No, I know multiple people who presently live there and have lived there in the past.
This is also one of the richest universities of India- not merely one of the best.
I also heard of someone who studied medicine at AIIMS Delhi. It is another of rich institutions of India. The rooms, although small, will match a 3 star hotel in terms of amenities. The same is simply not true for IISc. Despite being one of the richest unis of India, their amenities do not match that of AIIMS Delhi.
But that institute is not cash-sterved as Indian institutes go. The labs are great, the faculties are the same. Many of them can easily teach at any US uni.
What I think is the reason of absence of ACs in rooms is the Bangalore weather.
During most of the year, you really don't need an AC or even a ceiling fan.