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If you accept any alloted seat whether it is management quota or in normal process in NEET UG counselling then seat allotted to you in prior counselling will be cancelled. On the other hand if you do not accept upgradation of your seat then the prior seat allotted to you may not be cancelled. If you join in the seat for which you have applied for upgradation for government college then if the upgradation is done normally then you have to join in the upgraded seat allotment in government college.
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