Permanent Endowment Fund

(1) The Sponsoring Body shall establish a Permanent Endowment fund of at least of Rupees 5 (Five) crore for plane areas and Rupees 3 (Three) crore for hill areas in the form of a Bank Guarantee of a Nationalized Bank Pledged in the name of State Government for a period of 05 (five) years and it shall be renewed after every five years and after every five year the said Bank Guarantee shall be increased by 25 percent. (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, the Ordinances and the Regulations made there under. The State Government shall have the powers to forfeit, a part or whole of the Endowment Fund, in case the University or the Sponsoring Body contravenes the provisions of this Act, the Statutes, the Ordinances or the Regulations made there under. (3) The University may utilize the income from Endowment Fund for the development of infrastructures of the University or for meeting the recurring expenditure of the University.