There are many colleges under JKPMSSS having fees more than 1.25 LPA Lakh Per Annum. Most of them are private colleges and the quota they provide is the only seat, not the fees. If their fees is more than what AICTE is giving to them then obviously they will ask you. Though the scenario for Government colleges is different.
For colleges in Maharashtra, there is a quota by the state government for PMSSS students as the academic fees, which college will receive is only 25K and they cannot ask for more fees from the students.