Please explain how merit lists work

(This post is made with reference to UHS/KMU private admissions.)

My question is, what exactly happens if you don’t deposit those 3-4 lakh if your name appears in a certain university’s merit list. Say, if your name appears in a certain university’s merit list, but you don’t want to go that university (and want to go to a university higher up in your preference list), what do you do then? Do you still deposit the fee and opt for upgradation? Or will you be upgraded even if you don’t pay them?