Yes, it is absolutely true. I got to know about this from some of my friends who graduated from Jawaharlal Nehru Technological University, Kakinada.

• Your knowledge of the subject is merely a bonus as you are required to write your papers with neat and clean handwriting. 
• Your scores depend not only on the matter of your answer but your handwriting as well, it is given huge importance by the lecturers. 
• Filling all 32 pages with gibberish would not give you higher scores and might turn into a disadvantage on your part. 
• You are provided marks based on the clearance and understanding of concepts that are reflected in your paper. 
• It would be better if you improve your answers in your own words. Do not only write the concept but explain with examples as well. 
• Adding its merits and demerits would certainly give your answer an edge. 

Prepare and write your answers confidently and neatly rather than blaming the evaluation process later. Breaking your answer into paragraphs and points is preferred the most.