Chapter VIII Chapter VIII

Grant-in-Aid

The Government shall, within the limits of its economic capacity, set apart a sum of money annually for being given as grant-in-aid (hereinafter in this Act referred to as grant) to local authority institutions and private institutions in the State, recognised for this purpose in accordance with rules made in this behalf.

1. (1) The Government may in such cases as they think fit, by order, sanction grant to any recognised local authority educational institution or private educational institution subject to such conditions as they may impose in the order relating to such grant.
2. (2) Every grant sanctioned under sub-section
3. (1) shall be disbursed by the Director or such other officer subordinate to the Director as the Government may, by a general or special order, authorise in this behalf, in such manner and subject to such conditions as may be prescribed.
4. (3) The manager of every recognised institution which is receiving any grant out of State funds shall be responsible for the fulfilment of all the conditions subject to which such grant has been given.

1. (1) Any money received by way of voluntary donation from donors may be accepted by the institution and the fact shall be intimated within forty days from the date of such acceptance to the competent authority. Such money shall be deposited in the account of the institution, in such bank as may be approved by the Government and shall be applied and expended for the improvement of the institution and the development of educational facilities and for such other purposes as may be prescribed.
2. (2) No money shall be collected at the time of admission by any educational institution as a condition precedent to such admission except towards the prescribed fees. Where any institution is found to be collecting such money, every person, who, at the time of such collection was incharge of, and was responsible to the institution for the management of the institution shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees or with both.

Application for the conditions of such sanction

1. (1) Every application for the sanction of grant shall be made to the Government, in such form as may be prescribed and shall contain a declaration signed by the manager of the recognised institution to the effect that the conditions of recognition and of grant are being and shall continue to be fully observed, that all facilities for inspection of that institution, its accounts, registers and other records relating to the grant shall be afforded to the inspecting staff deputed for the purpose and that all the returns and reports prescribed in this behalf shall be submitted to the competent authority within the time specified by it.
2. (2) The Government may sanction such grant or for good and sufficient reasons may refuse to sanction such grant.
3. (3) Subject to the other provisions of this Act, any order passed by the Government refusing to sanction the grant shall be final and shall not be questioned in any court of law.

1. (1) Notwithstanding anything in this Chapter, the Government may, after such enquiry as they may deem fit, withhold, reduce or withdraw any grant payable to an educational institution having regard to the funds at the disposal of the Government or the conduct and efficiency and the financial condition of such institution, after giving an opportunity to the manager of the institution concerned of making a representation against such withholding, reduction or withdrawal.
2. (2) Without prejudice to the generality of the provisions of sub-section
3. (1) or any other provision of this Act, the Government, may, after such enquiry as they may deem fit, withhold, reduce or withdraw any grant payable to any educational institution if the manager of the institution concerned,—
   • (i) fails to fulfil all or any of the conditions of grant;
   • (ii) denies admission to any citizen on grounds only of religion, race, caste, language or any of them;
   • (iii) allows any employee of the institution to take part in any agitation intended to bring or attempt to bring into hatred or contempt, or intended to excite or attempt to excite disaffection towards, the Government established by law in India;
   • (iv) directly or indirectly, encourages any propaganda or practice of wounding the religious feelings of any class of citizens of India or insulting the religion or the religious beliefs of that class;
   • (v) is guilty of falsification of registers, of misuse of funds for purposes other than those for which they are collected;
   • (vi) fails to remedy within such reasonable time as may be specified by the competent authority, the defects in the maintenance of accounts pointed out by the auditors; or
   • (vii) fails to restore, within the time specified by the competent authority, an employee whose services have been wrongfully dispensed with or fails to pay him any arrears of salary or other benefits when directed to do so by the competent authority,
4. (3) Subject to the other provisions of this Act, every order passed under this section shall be final and shall not be questioned in any court of law.

1. (1) All the monies collected, grants received and other movable property held by, or on behalf of a private institution shall be utilised for the purposes for which they are intended, and shall be accounted to by the manager in such manner as may be prescribed.
2. (2) All the monies received or held by or on behalf of every private institution shall be deposited in a Bank.
3. (3) The surplus fund of every such institution shall be invested in such manner as may be prescribed and shall be utilised towards educational development only. Explanation.—For the purpose of this section “surplus fund” means all the monies that remain unused with the institution at the beginning of each academic year, after providing for all the objects, needs requirements or improvements of the institution during the previous three academic years.