Chapter III REGULATION OF PRIVATE COLLEGES

Every private college shall be managed and maintained in accordance with the norms and standards as prescribed by the Government, UGC and other concerned statutory authorities.

Whenever there is any change in the constitution or management of the educational agency, the educational agency shall inform the competent authority in such manner and in such time as prescribed of such change.

1. (1) The Government upon an application from educational agency, may, in its discretion, extend to the private college such aid at such amount and in such manner, as it may consider appropriate in terms of its policy;
2. (2) The Government may withhold permanently or for any specified period the whole or part of any aid referred to in sub-section
3. (1) in respect of any private college that fails to duly comply with any of the provisions of this Act or any rules made or directions issued by the Government.

1. (1) In every aided college, there shall be a fund, called “Aided College Fund" and there shall be credited thereto – a. any aid received; b. income accruing to the college by way of fees, charges or other payments, and c. any other contributions, endowments, gifts and the like.
2. (2) The Aided College Fund shall be accounted for and utilized by the educational agency in accordance with the rules as may be prescribed.
3. (3) Income accruing to private college by way of fees, shall be accounted for and utilized only for such purposes as may be prescribed;
4. (4) Charges or other payments and any other contributions, endowments and gifts received by private colleges shall be utilized only for the specific purpose for which they were realized or received and shall be accounted for as may be prescribed.

The Government may prescribe norms for fixation of fees of the aided private colleges.