Special powers of the Government in certain circumstances.(1) If it appears to the Government that the University has contravened any of the provisions of this Act or the rules, statutes or ordinances made thereunder or has contravened any of the directions issued by it under this Act or has ceased to carry out any of the undertakings given or a situation of financial mismanagement or maladministration has arisen in the University, it shall issue notice requiring the University to show cause within forty five days as to why an order of its liquidation should not be made.

1. (2) If the Government, on receipt of reply of the University on the notice issued under sub-section(1), is satisfied that there is a prima facie case of contravening all or any of the provisions of this Act or the rules, statutes or ordinances made thereunder or of contravening directions issued by it under this Act or of ceasing to carry out the undertaking given or of financial mismanagement or mal-administration, it shall make an order of such enquiry as it may consider necessary.
2. (3) The Government shall, for the purpose of any enquiry under sub- section(2), appoint an inquiry officer or officers to inquire into any of the allegations and to make report thereon.
3. (4) The inquiry officer or officers appointed under sub-section(3) shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908(5 of 1908) while trying a suit in respect of the following matters, namely:—
   • (a) summoning and enforcing the attendance of any person and examining him on oath;
   • (b) requiring the discovery and production of any such document or any other material as may be predicable in evidence;
   • (c) requisitioning any public record from any court or office; and (d) any other matter which may be prescribed.
4. (5) The inquiry officer or officers inquiring under this Act, shall be deemed to be a civil court for the purposes of section 195 and Chapter 26 of the Code of Criminal Procedure, 1973(2 of 1974).
5. (6) On receipt of the enquiry report from the officer or officers appointed under sub-section (3), if the Government is satisfied that the University has contravened all or any of the provisions of this Act or the rules, statutes, or ordinances made thereunder or has violated any of the directions issued by it under this Act or has ceased to carry out the undertakings given by it or a situation of financial mis-management or mal-administration has arisen in the University which threatens the academic standard of the University, it shall issue orders for the liquidation of the University and appoint an administrator.
6. (7) The administrator appointed under sub-section(6) shall have all the powers and be subject to all the duties of the Governing Body and the Board of Management under this Act and shall administer the affairs of the University until the last batch of the students of the regular courses have completed their courses and they have been awarded degrees, diplomas or awards, as the case may be.
7. (8) After having awarded the degrees, diplomas or awards, as the case may be, to the last batches of the students of the regular courses, the administrator shall make a report to this effect to the Government.
8. (9) On receipt of the report under sub-section(8), the Government shall, by notification in the Official Gazette, issue an order dissolving the University and from the date of publication of such notification, the University shall stand dissolved and all the assets of the University 1[including assets of the sponsoring body pertaining to the University] shall vest in the Government free from all encumbrances from the date of dissolution.

¹ Subs. for the words “twenty five years” vide Act No. 31 of 2013 w.e.f. 29.9.2010.

² Ins. vide Act No. 13 of 2013.