Chapter VII FUNDS OF UNIVERSITY

(1) The Sponsoring body shall establish an Endowment Fund (corpus fund) for the University with an amount specified in the Letter of Intent. (2) The Endowment Fund shall be used as security deposit to ensure that the University complies with the provisions of this Act and functions as per provisions of this Act, the statutes, the Ordinances, the Regulations and the rules. The Government shall have the powers to order forfeiture, a part or whole of the Endowment Fund in case the University or the Sponsoring body contravenes the provisions of this Act or the Statutes, the Ordinances, the Regulations or the rules made thereunder. In such a case the forfeited amount shall be utilized for due compliance with the provisions of this Act, statutes ordinances, regulations or the rules as the case may be: Provided that before issuing an order of forfeiture under this sub-section, the Government shall afford an opportunity of representation to the University or the Sponsoring body as the case may be. (3) The University if required may utilize 75% of the income from Endowment Fund for the development of infrastructure of the University and not to meet the recurring expenditure of the University. The balance and unutilized income shall be added to the Endowment Fund. (4) The amount of Endowment Fund shall be invested in such highly secure and liquid instruments of scheduled commercial Banks and kept invested until the dissolution of the University. (5) The Governing Body shall be responsible and accountable for the safety and correct utilization of the Endowment Fund. (6) The Governing Body shall ensure that the University prepares an audited report on the status and utilization of interest proceeds of the Endowment Fund annually, which may be sought by the Government from time to time. Provided that the University which fails to maintain such a Report may be enquired into as per section 44.

Every University shall establish a fund, which shall be called the General Fund to which the following shall be credited, namely:- (a) fees and other charges received by the University; (b) for procurement & upkeep of the assets of the University; (c) any income received from consultancy and other work undertaken by the University in pursuance of its objectives; (d) trusts, bequests, donations, endowments and any other grants; and (e) the income derived from the land. (f) all other sums received by the University.

The General Fund shall be utilized for the following objects, namely:- (a) for the repayment of debts including interest charges thereto incurred by the University for the purposes of this Act and the Statutes, the Ordinances, the Regulations and the rules made thereunder with the prior approval of the Governing Body; (b) for upkeeping the assets of the University; (c) for the payment of the fee for audit of the funds created under section 36 and 37; (d) for meeting the expenses of any suit or proceedings by or against the University; (e) for the payment of salaries, allowances, Provident Fund contributions, gratuity and other benefits to officers, employees and members of the teaching and research staff; (f) for the payment of travelling and other allowances of the members of the Governing Body, the Board of Management, the Academic Council, other authorities and the members of any committee appointed by any of the authorities or the Chancellor or the Vice Chancellor; (g) for the payment of fellowships, freeships, scholarships, assistantships and other awards to the students belonging to economically weaker sections of the society or research associates, trainees or, as the case may be, to any student otherwise eligible for such awards under the Statutes, the Ordinances, the Regulations or the Rules; (h) for the payment of any expenses incurred by the University in carrying out the provisions of this Act or the Statutes, the Ordinances, the Regulations or the Rules; (i) for the payment of cost of capital, not exceeding the prime lending rate from time to time of the State Bank of India, incurred by the Sponsoring body for setting up the University and the investments made there for; (j) for the payment of charges and expenditure relating to the consultancy work undertaken by the University in pursuance of the provisions of this Act or the Statutes, the Ordinances, the Regulations or the rules made there under; (k) for the payment of any other expenses including service fee payable to any organization charged with the responsibility of providing any specific service, including the managerial services to the University, on behalf of the sponsoring body, as approved by the Board of Management to be an expense for the purposes of the University: Provided that no expenditure shall be incurred by the University in excess of the limits for total recurring expenditure and total non-recurring expenditure for the year, as may be fixed by the Board of Management, without prior approval of the Board of Management. (e) contributions, gratuity and other benefits to officers, employees and members of the teaching and research staff; (f) for the payment of travelling and other allowances of the members of the Governing Body, the Board of Management, the Academic Council, other authorities and the members of any committee appointed by any of the authorities or the Chancellor or the Vice Chancellor; (g) for the payment of fellowships, freeships, scholarships, assistantships and other awards to the students belonging to economically weaker sections of the society or research associates, trainees or, as the case may be, to any student otherwise eligible for such awards under the Statutes, the Ordinances, the Regulations or the Rules; (h) for the payment of any expenses incurred by the University in carrying out the provisions of this Act or the Statutes, the Ordinances, the Regulations or the Rules; (i) for the payment of cost of capital, not exceeding the prime lending rate from time to time of the State Bank of India, incurred by the Sponsoring body for setting up the University and the investments made there for; (j) for the payment of charges and expenditure relating to the consultancy work undertaken by the University in pursuance of the provisions of this Act or the Statutes, the Ordinances, the Regulations or the rules made there under; (k) for the payment of any other expenses including service fee payable to any organization charged with the responsibility of providing any specific service, including the managerial services to the University, on behalf of the sponsoring body, as approved by the Board of Management to be an expense for the purposes of the University: Provided that no expenditure shall be incurred by the University in excess of the limits for total recurring expenditure and total non-recurring expenditure for the year, as may be fixed by the Board of Management, without prior approval of the Board of Management.