Which option is better and why: IEM at Dayanand Sagar College of Engineering or TC at Sir MVIT?

It all depends upon your interest and future perspective. Choose Telecommunication Engineering or IEM based on your interest. 

IEM is a combination of mechanical engineering, product engineering, and management studies, so if you want to gain hands-on experience in management studies and see the future perspective in the same field, then IEM is one of the best fields to pursue. Also, IEM subjects are easier compared to Telecommunication. IEM becomes more theory-oriented towards the 3rd semester. 

Now regarding colleges, VTU affiliated colleges are good to pursue your higher studies and the teaching levels are the same in all the colleges. Also, the placements are quite decent in these colleges.