I hope the rule hasnt changed in 5 years, but we needed to deposit 1.6 L at the time of admission. Still I will try to guide and help you
Now to answer your questions:
1. Once you take admission, and decide not to pursue in KIIT, you will be refunded 50% of the deposited money. ie. 80K in our time. I hope the same is applicable now. A friend of mine actually did this and still cries for the remaining 80K, sitting in New York. But since the DD is of 61K now, I doubt about the 50% theory.
2. The student intake has increased to a great extent now. So, I reckon with AIR7069, you can fit in CSE department, at least in the 2nd counselling. Its better to consult someone from the last year, to know the trend. I did it in my time.