Gujrat government issue the freeship card for SC/ST students and other reserved category, so that they can reimburse the fee when studying in college or universities. It depends on few point whether it get cancelled or not. The freeship card is not cancelled that easily if you failed a semester but if you fail and don't clear that subjects in time, you may lose fee reimbursement for the failed subjects/semester. Be ineligible for continued freeship benefits in the next academic year until you pass.