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Yes, this is true. Students begin to hide the truth from their teachers and parents. No point of giving rise to dishonest adults
What can actually be done by teachers is making the students realise the mistakes , explaining the irreversible implications of it and that what impact it will cause on the student's life/future
That's why one should maintain a balance to the intensity of the punishment because if overdone it doesn't solve the purpose as rather than student understanding what their mistakes are, it creates a negative effect.