Procedure for payment of salary in the case of certain institutions receiving maintenance grant from the State Government.

(1) The management of every institution receiving maintenance grant from the State Government shall for the purposes of disbursement of salaries to its teachers and employees open in a scheduled bank or a co-operative bank a separate account to be operated jointly by a representative of the management and by the District Education Officer or such other officer as may be authorized by the District Education Officer in that behalf: Provided that after the account is opened the District Education Officer may, if he is subject to any rules made under this Act, satisfied that it is expedient in the public interest to do so, instruct the bank that the account shall be operated by the representative of the management alone, and may at any time revoke such instruction : Provided further that the case referred to in the proviso to sub-section (2), or where a difficulty arises in the disbursement of salaries due to any default of the management the District Education Officer may instruct the bank that the account shall be operated only by himself or by such other officer as may be authorized by him in that behalf and may at any time revoke such instruction. (2) The management shall deposit in the said account by such date as may be specified by general or special orders by the District Education Officer, eighty percent or where the state government or an officer authorized by the state government having regard to the money required to be disbursed, directs a higher percentage, then such higher percentage as it or he may direct of the amount received from students, as fees which in accordance with the general or special orders of the state government in that behalf (and for so long as such orders are not made in, accordance with the directions of the district Education Officer) form part of the maintenance fund: Provided that where the said percentage of fees is not deposited as aforesaid the District Education Officer may by order prohibit the management from making any realization of fees from the students, there upon the District Education Officer may recover the fees (either through the teachers of the institutions or in such other manner as he thinks fit) directly from the students and shall deposit the fees recovered in the said account. (3) The entire amount of the maintenance grant and the amount of eighty percent or such higher percentage as the state government or an officer authorized by the state government may by general or special order in that behalf determine, of the grants, for reimbursement of freeships and other similar concession shall also be paid by the state government into the said account. (4) No money credited to the said account shall be applied for any purpose except the following, namely: (a) Payment of the said salaries falling due for any period from the date of the commencement of this Act; (b) Credit of the institution’s contribution, if any, to the institution receiving maintenance grant from the State