Withdrawal of grant-in-aid

D.

1. (1) The prescribed authority may withdraw the grant-in-aid of a private educational institution, if—
   • (i) the recognition of the institution has been suspended or withdrawn;
   • (ii) the percentage of students passing the Annual and Supplementary examinations conducted by the Board of Secondary Education or the Council of Higher Secondary Education or the concerned University, as the case may be, falls short of half of the percentage of students passing such examination for the entire Board or the Council or the University, as the case may be, for three consecutive years;
   • (iii) the Governing Body or the Managing Committee, as the case may be, defaults in furnishing the statement under sub-section (1) of Section 8 or furnishes statement which is false or incorrect;
   • (iv) the Managing Committee or the Governing Body, as the case may be, or the Secretary of an aided educational institution acts in contravention of the provisions of sub-section (1) of Section 9, or of any order passed under sub-section (2) of Section 9;
   • (v) the Governing Body or the Managing Committee, as the case may be, or the Secretary is found to be misutilising the funds of the educational institution concerned including grant-in-aid received, if any, or utilising it for any purpose other than meeting the legitimate cost of running the educational institution, development of the educational institution, or welfare of the students or employees of that institution;
   • (vi) there has been persistent default in maintaining correct accounts of the receipts and expenditure of the educational institution or there has been persistent default in submitting audited statement of its accounts within the specified period;
   • (vii) the educational institution fails to conduct the examinations of the Board, the Council, or any of the Universities or any other examining bodies of the State fairly and properly or if the Governing Body or the Managing Committee, as the case may be, or any of its employees assists or abets in adoption of malpractices in such examinations or fails to prevent adoption of malpractices;
   • (viii) unless otherwise permitted, the educational institution is found to be admitting students on any criteria other than merit; Explanation—In the context of merit of students belonging to reserved categories it shall mean inter se merit within the respective category;
   • (ix) the private educational institution utilises the grant-in-aid for any purpose other than the purpose for which such grant-in-aid was paid specifically or fails to render satisfactory and timely account of its proper utilisation.
   • (x) the private educational institution has secured grant-in-aid by fraud or by misrepresentation of facts or by submission of incorrect facts through false declaration or by concealing any relevant information;
   • (xi) the aided educational institution refuses to accept a teacher posted on transfer or continues to retain the services of a teacher who has been transferred by the competent authority; and
   • (xii) the aided educational institution makes appointment in a manner not consistent with the Act and the Rules : Provided that where the prescribed authority is satisfied that prima facie circumstances exist for action under this sub-section, he may make an order suspending payment of grant-in-aid for such period not exceeding three months as he may deem fit.
2. (2) Before withdrawing the grant-in-aid, the Managing Committee or the Governing Body, as the case may be, shall be given a notice of the action proposed to be taken and required to show cause within a period of thirty days from the date of receipt of the notice as to why such action shall not be taken.
3. (3) The Managing Committee or the Governing Body, as the case may be, aggrieved by an order of the prescribed authority withdrawing grant-in-aid, may, in such manner and within such period not exceeding sixty days, as may be prescribed, prefer an appeal before the State Government, whose decision thereon shall be final.