Chapter VII FINANCIAL PROVISIONS

Self-financing University.—(1) A Private University established under this Act shall be a self-financed institution and shall not be entitled to receive any grant or financial assistance from the Government for its maintenance or development, unless otherwise decided by the Government ;

1. (2) The sponsoring body shall be responsible for the financial requirements of the university.

Endowment Fund.—(1) The Sponsoring Body shall establish an Endowment Fund to the tune of Rs. 1 Crore for a multi-domain university offering programmes across multiple disciplines.

1. (2) The Endowment Fund shall be kept in a fixed deposit for a period of not less than ten years.
2. (3) The interest accruing on the Endowment Fund may be utilized for the development of the university.
3. (4) The principal amount of the Endowment Fund shall not be withdrawn without the prior approval of the Government.
4. (5) In case of dissolution of the university, the Endowment Fund shall be first utilized for the payment of liabilities to students and employees.

General Fund.—(1) Every Private University shall maintain a General Fund.

1. (2) The General Fund shall consist of—
   • (a) fees and other charges received from students;
   • (b) income from investments;
   • (c) donations, grants, and contributions;
   • (d) any other income.
2. (3) The General Fund shall be applied towards the expenses of the university including—
   • (a) payment of salaries and allowances to teachers and staff;
   • (b) maintenance and development of infrastructure;
   • (c) conduct of academic programmes and research:
   • (d) provision of scholarships and freeships;
   • (e) such other purposes as may be specified by the Statute.

Fee structure and Prohibition of Capitation Fee.—(1) The fee structure of a Private University shall be transparent and reasonable.

1. (2) The fee structure shall be approved by the Governing Council and notified on the website of the university.
2. (3) No Private University shall charge any fee other than the notified fee.
3. (4) No Private University shall, directly or indirectly, demand or accept, by itself or through any other person, any capitation fee or any donation as a condition for admission.
4. (5) Contravention of sub-section
5. (4) shall be an offence punishable under this Act.

Reservation for Local Students and Scholarships.—(1) Notwithstanding anything contained in this Act, every Private University established under this Act, shall reserve not less than twenty-five percent (25%) of the total seats in each programme for students who are domiciles of the Union Territory of Jammu and Kashmir.

1. (2) The reservation provided under sub-section
2. (1) shall be apportioned among the eligible categories in accordance with such guidelines, standing orders or instructions as may be issued by the Government from time to time.
3. (3) Every University shall provide scholarships and freeships to not less than ten percent of the students based on merit-cum-means criteria.
4. (4) The criteria and procedure for grant of scholarships and freeships shall be specified by the university and placed in the public domain.

Audit of Accounts.—

1. (1) The annual accounts and balance sheet of a Private University shall be prepared under the directions of the Executive Council and shall, once at least every year and at intervals of not more than fifteen months, be audited by an experienced and qualified firm of Chartered Accountant eligible for conducting audit as per the provisions of the Chartered Accountant Act, 1949.
2. (2) A copy of the annual accounts, together with the audit report thereon, shall be submitted to the Governing Council and the Chancellor along with the observations of the Executive Council for their approval.
3. (3) The audited accounts along with the annual report shall be submitted to the Government and the Regulatory Authority within six months of the close of the financial year.
4. (4) The audited accounts shall be placed on the website of the university.