Conflicts on hostel terms and conditions

We run a hostel which is registered with the government department .when a student takes admission in our hostel student has to sign the form along with their parents after through reading of terms and conditions of the hostel. in the terms and condition there is a clause that we charge on monthly basis and get deposited the 1 month advance rent .in that we added that if student vacates the hostel before the tenure of 10 months period we will not return the advance rent which is equivalent to 1 month rent although if student stays for more than 10 months we return the advance amount .my question is 1.whether we r following the right path or not 2.suppose if a student says that student have not read the form at the time of admission in the hostel and demands the advance amount to be returned by us after completion of 4 months only and blackmail us to return the advance amount or student will call the police 3.does police authority can directly order us to return the advance amount of the student without hearing of our terms and conditions which is in paper documents or police can call directly to police station and blackmail us to return the advance amount 4 we have signed form of the student in which it is clearly written that advance amount will be returned only after completion of 10 months only