is it normal that university officials keep half or more than than half of the scholarship amount to themselves???

the focal person of hec at my university said that I wont get any money untill i submit my synopsis for phd... but i am still doing ms....

focal person said that the scholarship amount will be put to the university account

somebody please post details of how everything works in university and in hec once indigenous phd fellowship is confirmed??? I am so confused ....