Dear Surekha, if you are opting for a free exit, you will not be penalised. You can surrender your seat within the stipulated time frame im person at the seat allotted college and then you can appear for the subsequent round.of counselling. However, if you arent satisfied with the options available during 2nd round of counselling, you can opt out of the counselling all together and your amount will be refunded back to the account from which the payment was made. And this will only be done after the entire counselling process has been completed. And none of this will happen if you dont surrender your seat within the allotted time in person.

Hi Surekha,
                    Of which exam's counselling are you talking about?
Please share details that I can help you better.