Dear Aspirant 

No, its not compulsory to submit a demand draft of 1 lakhs as the candidate is given a choice of either paying a DD of 1 lakhs with photocopies of the certificates OR depositing the original documents at the time of admission in AIIMS.

If you are opting for DD then it will be refunded when original certificates are deposited.

NOTE: The above mentioned details are from the AIIMS 2018 and there might be changes for this year which will be further announced by the AIIMS officials. In many of the sites, the statement about DD is wrong or incomplete or confusing, kindly avoid that.

Hope this helps you.