Short answer
Yes, in Rounds 1 and 2. If you get a state counselling seat you want, you must surrender your MCC seat by resigning: this is a free exit in Round 1, but in Round 2 your security deposit is forfeited. A Round 3 MCC seat cannot be resigned.
These are the rules for MCC's NEET-PG 2026 counselling, which is running now (from MCC's 2026 Information Bulletin). MCC sets the rules again each year.
Who this applies to
Candidates holding an MCC PG seat (AIQ, Deemed or Central University/Institute) who are also taking part in state quota counselling
The rule, explained
MCC's scheme lets its candidates also take part in state counselling. If you are allotted a state seat you want to join, you have to surrender your MCC seat.
How you resign depends on your choice after allotment. Freeze candidates submit their resignation at the institute where they joined the AIQ seat. Float candidates submit an online resignation, which is recorded automatically on the MCC portal.
The cost: Round 1 is a free exit; Round 2 is with forfeiture. MCC forfeits the security deposit of candidates allotted a seat in Round 2 or later who do not join or who surrender the seat.
In Round 3, you must join the allotted seat and no resignation is allowed. Non-joining candidates lose their security deposit and cannot take part in further rounds.
MCC and the states share data on candidates. Anyone whose name is in a state's list after the state's Round 3 is removed from MCC counselling before the All India Stray Vacancy Round. The rules for leaving a state quota seat are set by the state counselling authority, so check them there.
What the official document says
Wants to join State allotted seat, candidate will have to surrender AIQ seat. Submit resignation at the AIQ admitted Institute.
Medical Counselling Committee (MCC), DGHS · NEET-PG (MD/MS/DNB) Counselling 2026 Information Bulletin & Counselling Scheme (cover: “PG Bulletin DRAFT – V10 05102026”), PDF page 15 (opens the official site)
The Security Deposit of candidates who have been allotted a seat in the Second Round or subsequent rounds but do not join the respective institution or surrender the seat due to any unforeseen reason, will be forfeited.
Medical Counselling Committee (MCC), DGHS · NEET-PG (MD/MS/DNB) Counselling 2026 Information Bulletin & Counselling Scheme (cover: “PG Bulletin DRAFT – V10 05102026”), PDF page 7 (opens the official site)
Candidate will have to join the Allotted Seat , Non joining candidates Security Deposit will be forfeited. No Resignation is Allowed (Also cannot participate in further Rounds)
Medical Counselling Committee (MCC), DGHS · NEET-PG (MD/MS/DNB) Counselling 2026 Information Bulletin & Counselling Scheme (cover: “PG Bulletin DRAFT – V10 05102026”), PDF page 16 (opens the official site)
Data will be shared between Centre and States after Round 3 of states and if any candidate has his/her name in the list provided by State after round 3, such candidates will be eliminated from counseling before processing for All-India Stray Vacancy Round.
Medical Counselling Committee (MCC), DGHS · NEET-PG (MD/MS/DNB) Counselling 2026 Information Bulletin & Counselling Scheme (cover: “PG Bulletin DRAFT – V10 05102026”), PDF page 46 (opens the official site)