Chapter X FUNDS OF THE UNIVERSITY

1. (1) The Sponsoring Body shall establish an Endowment Fund for the University with an amount of Rs.2,00,00,000/- (two crore), in a Nationalized Bank in Sikkim or the State Bank of Sikkim and which shall be pledged to the Government of Sikkim.
2. (2) The Endowment Fund shall be used as security deposit to ensure that the University complies with the provisions of this Act and functions as per the provisions of this Act, the Statutes and the Ordinances. The State Government shall have the power to forfeit, a part or whole of the Endowment Fund in case the University or the Sponsoring Body contravenes with any of the provisions of this Act, Statutes, the Ordinances, the Regulations or the Rules made there under.
3. (3) The University may with the permission of the State Government utilize the interest from the Endowment Fund (Principal Amount) for the development of infrastructure of the University and not to meet the recurring expenditure of the University.
4. (4) The amount of Endowment Fund may be invested in such instruments as the Government may prescribe and kept invested until the dissolution of the University.
5. (5) In case of investment in long term security, the certificates of the securities shall be kept in the safe custody of the Government and in case of deposit in the interest-bearing Personal Deposit account in the Government Treasury, deposit shall be made with the condition that the amount shall not be withdrawn without the permission of the Government.

1. (1) The University shall establish a fund, which shall be called the General Fund to which the following shall be credited, namely:
   • (a) fees and other charges received by the University;
   • (b) any contribution made by the Sponsoring Body;
   • (c) any income received from consultancy and other work undertaken by the University in pursuance of its objective;
   • (d) trusts, bequests, donations, endowments and any other grants; and
   • (e) all other sums received by the University.
2. (2) The General Fund shall be utilized for the following objects, namely:
   • (a) for the repayment of debts including interest charges thereto incurred by the University for the purposes of this Act and the Statutes, the Ordinances, the Regulations, and the Rules made there under with the prior approval of the Governing Body;
   • (b) to upkeep the assets of the University;
   • (c) for the payment of the fee for audit of the funds created under sections 49 and 56;
   • (d) to meet with the expenses of any suit or proceedings by or against the University;
   • (e) for the payment of salaries, allowances, provident fund contributions, gratuity and other benefits to officers, employees, and members of the teaching and research staff;
   • (f) for the payment of travelling and other allowances of the members of the Governing Body, the Executive Council, the Academic Council, other authorities and the members of any committee appointed by any of the authority or the Chairperson of the Sponsoring Body or the Chancellor;
   • (g) for the payment of fellowships, free-ships, scholarships, assistantships and other awards to the students belonging to economically weaker sections of the society or research associates, trainees or, as the case may be, in any student otherwise eligible for such awards under the Statutes, the Ordinances, the Regulations or the Rules;
   • (h) for the payment of any expenses incurred by the University in carrying out the provisions of Act, Statutes, the Ordinances, the Regulations or the Rules;
     • (i) for the payment of cost of capital, not exceeding the prime lending rate from time to time of the State Bank of India, incurred by the Sponsoring Body for setting up the University and the investments made therefore;
   • (j) for the payment of charges and expenditure relating to the consultancy work undertaken by the University in pursuance of this Act, Statutes, the Ordinances, the Regulations or the Rules;
   • (k) for the payment of any other expenses including service fee payable to any organization charged with the responsibility of providing any specific service, including the managerial services to the University, on behalf of the Sponsoring Body, as approved by the Governing Body to be an expense for the purposes of the University: Provided that no expenditure shall be incurred by the University in excess of the limits for total recurring expenditure and total non-recurring expenditure for the year, as may be fixed by the Governing Body, without prior approval of the Governing Body.

The funds established under section 49 and section 56 shall, subject to conditions provided by the State Government, be regulated and maintained in such manner as may be prescribed.