Constitution of Institutional fund for payment of salary of teachers, etc; and amounts to be deposited therein.

(1) There shall be opened in an nationalised bank, a separate account which shall be constituted as a separate fund for the Institution (hereinafter referred to as the Institutional Fund) in accordance with the rules made in this behalf.

(2) The grant as fixed by the State Government from time to time shall be payable to the institution as a block grant. The grant shall be given to the institution after furnishing by it the utilization certificate of the previous grant alongwith detailed audited account and annual account statement.

(3) the management shall place at the credit of the institutional Fund by the last day of every month the total amount of fees recovered from the students of the Institution.

(4) In addition to the fee deposited under sub-section (3), the management shall place to the credit of the Institutional Fund by the 10th of every month for payment of salary to teachers and employees of the institution for the preceding month such further sums as may be required to make the 1/12th of the total amount credited under sub- section (2) together with amount credited under sub-section (3) equivalent to 1/12th of the total salary payable to teachers and employees of the institution with institution’s contribution to the provident fund account of those teachers and employees per annum.

(5) No money credited to the institutional fund shall be applied for any purpose except the following, namely :-

(a) Payment of salaries falling due for any period after the approved date date;

(b) Credit of the institutions contribution, if any, to the provident fund accounts of the teachers and employees;