Dissolution of University.

(1) If the Sponsor proposes dissolution of the University in accordance with the law governing its constitution or incorporation, it shall give at least three months notice in writing to the State Government. (2) On identification of mismanagement, mal-administration, in- discipline, failure in the accomplishment of the objects of the University and economic hardships in the management systems of the University, the State Government would, subject to and in accordance with relevant law, if any, for the time being in force, issue directions to the sponsor of the University and if the direction are not followed within such time as may be prescribed, the right to take decision for winding up of the University would vest in the State Government. (3) The manner of winding up of the University would be such as may be prescribed by the State Government in this behalf: Provided that no such action will be initiated without affording a reasonable opportunity to show cause to the Sponsor. (4) On receipt of the notice referred to in sub-section (1) or on a decision to wind up under sub-section (2), the State Government shall, in consultation with the All India Council for Technical Education, University Grants Commission and other concerned Regulatory Bodies, make such arrangements for administration of the University from the proposed date of dissolution or winding up of the University until the last batch of students in regular courses of studies of the University complete their courses of studies in such manner as may be prescribed.