Is it correct that MBA colleges with lower fee structure are not good for higher placements?

No, not all. Colleges with decent fee structure can also provide higher placements depending upon your own skills. You should watch out return on investment. Many colleges take money is Lacs but provides the same package which you can get in colleges with low fees structure.

Hello! That is totally incorrect. There are esteemed colleges such as FMS New Delhi, SIMSREE Mumbai, IITs which are well-renowned for their placements. You can check their placement reports for yourself.