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Hello Aspirant,
See if you resign the seat allotted in AIQ counselling round 2nd and then you can definitely join the seat allotted through state quota counselling because once you take an exit from counselling then you become eligible for all further rounds of counselling but note that if you take an exit or resign your seat now means after round 2nd then you will lose your security money deposited for AIQ counselling because free exit option was only available till round 1st.
You can check out complete information from the link given below :-
https://mcc.nic.in/WebinfoUG/Page/Page?PageId=1&LangId=P
I hope this information helps you.
Good Luck!!
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