Endowment fund

(1) The sponsoring body shall establish an Endowment Fund for the University with an amount of rupees three crores, which shall be pledged to the State Government within a period of five years from the date of commencement of the Act: Provided that rupees one crore shall be pledged in the first year and the remaining rupees two crores shall be pledged within the next four succeeding years. (2) The Endowment Fund shall be kept as security deposit to ensure strict compliance of the provisions of this Act, rules, Regulations, Statutes or Ordinances made thereunder. (3) The State Government shall have the powers to forfeit, in the prescribed manner, a part or whole of the Endowment Fund in case the University or the sponsoring body/ sponsor contravenes any of the provisions of this Act, rules, Statutes, Ordinances or Regulations made thereunder. (4) Income from Endowment Fund shall be utilized for the development of infrastructure of the University but shall not be utilized to meet out the recurring expenditure of the University. (5) The amount of Endowment Fund shall be kept invested, until the dissolution of the University, by way of Fixed Deposit Accounts in any scheduled Bank.