Chapter 7 FUNDS AND THEIR APPLICATIONS

1. (1) The Sponsoring Body shall establish an Endowment Fund for the University with an amount of surplus two crore, which shall be pledged to the Government once the day-to-day operation of University take place.
2. (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. (3) The 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 contravenes any of the provisions of this Act, Rules, Regulations, Statutes or Ordinances made thereunder.
4. (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. (5) The amount of Endowment Fund shall be kept invested, until the dissolution of the University, by way of Fixed Deposit.

The University shall establish a fund, which shall be called the General Fund to which following shall be credited, namely: -

1. (a) fees and other charges received by the University;
2. (b) any contribution made by the Sponsoring Body;
3. (c) any income received from consultancy and other works undertaken by the University;
4. (d) bequests, donations, except from parents and students, endowments and any other grants; and
5. (e) all other sums received by the University.

The General Fund shall be utilized for the following purposes, namely: -

1. (a) for the payment of salary and allowances of the employees of the University and members of the teaching and research staff, and for payment of any Provident Fund contributions, gratuity and other benefits to such officers and employees;
2. (b) for the expenses to be incurred by the University for services availed including services like electricity, telephone, etc.;
3. (c) for the payment of taxes or local levies wherever applicable;
4. (d) for up keeping of the assets of the University;
5. (e) for the payment of debts including interest charges thereto incurred by the University;
6. (f) for the payment of travelling and other allowances to the members of the Governing Body, the Board of Management and the Academic Council;
7. (g) for the payment of fellowships, free-ships, scholarships, assistantships and other awards to students belonging to economically weaker sections of the society or research associates or trainees, as the case may be, or to any student otherwise eligible for such awards under the Statutes,Ordinances, Regulations or Rules made under this Act;
8. (h) for the payment of the cost of audit of the funds created under this Act;
   • (i) for meeting of expenses of any suit or proceedings to which University is a party;
9. (j) for the purpose of movable and immovable assets;
10. (k) for the payment of any expenses incurred by the University in carrying out the provisions of this Act or the Statutes, Ordinances, Regulations or Rules made thereunder; and
11. (l) for the payment of any other expenses as approved by the Board of Management to be an expense for the purposes of the University: Provided, 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 Board of Management, without its prior approval: Provided further that the General Fund shall, for the purpose specified in the clause, be applied with the prior approval of the Governing Body: Provided also, that no portion of income and property of the University shall be paid or transferred directly or indirectly, by way of dividend, bonus or otherwise, howsoever by way of profit to the persons who were at any time or are members of the University or to any of them or any persons claiming through them: Provided also, that nothing herein contained shall prevent the payment in good faith of remuneration to any member thereof or other person as consideration for any service rendered to the University or for travelling or other allowances and such other charges.

The funds established under sections 42 and 43 shall be regulated and maintained in such manner as may be prescribed by the Statutes.