College is refusing to give scholarship now and threatening me

There is collage providing study free to chd and sc student . So i get admission in that collage , before admission i clearlly told them that my parents are living in mohali but i am living with mama in chd , so they told me that you have make affidavit for it so made the same and my study start in 3rd semester they told that your scholarship is cancel you have to pay for study . Now they told me that if you go for court they will fire case on me for 420, plz suggest best for it , now am in 5 semester