26. (1) For the purposes of enabling the Institute to discharge their functions efficiently
under this Act, the Central Government and the State Government may, after due appropriation
made by the Parliament and the concerned State Legislature, as the case may be, by law in
this behalf, pay to each Institute in every financial year such sums of money in such manner
as is required to fulfil their obligations under section 11.
(2) The Central Government and the concerned State Government shall provide to
each Institute, grants of such sums of money as are required to meet the expenditure on
scholarships or fellowships instituted by it, including scholarships or fellowships for
students from socially and educationally backward classes of citizens enrolled in such
Institute.
27. (1) Every Institute shall maintain a Fund to which shall be credited—
(a) all monies provided by the Central Government or the State Government or
industry partner, as the case may be;
(b) all fees and other charges received by the Institute from students;
(c) all monies received by the Institute by way of grants, gifts, donations,
benefactions, bequests or transfers;
(d) all monies received by the Institute from utilisation of intellectual property
Grants by
Central
Government
and State
Governments.
Fund of
Institute.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13
arising from research conducted or provision of advisory or consultancy services by
it; and
(e) all monies received by the Institute in any other manner or from any other
source.
(2) The Fund of every Institute shall be applied towards meeting the expenses of the
Institute including expenses incurred in the exercise of its powers and discharge of its duties
under this Act, furtherance of research in the Institute or in collaboration with other educational
institutions or industry and for capital investment aimed at the growth and development of
the Institute.
(3) All monies credited to the Fund of every Institute shall be deposited in such banks
or invested in such manner as the Institute may, with approval of the Board, decide.
(4) Each Institute shall create a corpus fund for long term sustainability of the Institute,
to which shall be credited such per cent. of the net income of the Institute and donations
made specifically towards such corpus fund as the Central Government may, in accordance
with the provisions of the Income-tax Act, 1961, notify:
Provided that the Board may also create endowment funds for specific purpose to
which donations may be specifically made.
28. (1) Every Institute shall maintain proper accounts and other relevant records and
prepare annual statement of accounts including the balance sheet in such form and accounting
standard as may be specified by notification, by the Central Government in consultation with
the Comptroller and Auditor-General of India.
(2) Where the statement of income and expenditure and the balance sheet of the
Institute do not comply with the accounting standards, the Institute shall disclose in its
statement of income and expenditure and balance sheet, the following, namely:—
(a) the deviation from the accounting standards;
(b) the reasons for such deviation; and
(c) the financial effect, if any, arising out due to such deviation.
(3) The accounts of every Institute shall be audited by the Comptroller and AuditorGeneral of India or any other person in accordance with the provisions of the extant rules and
any expenditure incurred by audit team in connection with such audit shall be payable by the
Institute to the Comptroller and Auditor-General of India or such person.
(4) The Comptroller and Auditor-General of India and any person appointed in
connection with the audit of the accounts of any Institute shall have the same rights, privileges
and authority in connection with such audit as the Comptroller and Auditor-General of India
has in connection with the audit of the Government accounts and, in particular shall have the
rights to demand the production of books, accounts, connected vouchers and other
documents and papers and to inspect the offices of the Institute.
(5) The accounts of every Institute as certified by the Comptroller and Auditor-General
of India or any other person appointed in this behalf together with the audit report thereon
shall be forwarded annually to the Central Government.
29. Every Institute may constitute for the benefit of its employees such provident or
pension fund or provide such insurance scheme as it may deem fit in such manner and
subject to such conditions as may be laid down by the Statutes.
30. All appointments of the staff of every Institute, except that of the Director, shall be
made in accordance with the procedure laid down in the Statutes.
31. Subject to the provisions of this Act, the Statutes may provide for all or any of the
following matters, namely:—
(a) the formation of departments of teaching;
43 of 1961.
Accounts and
audit.
Pension and
provident
fund.
Appointments.
Statutes.
14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(b) the institution of fellowships, scholarships, exhibitions, medals and prizes;
(c) the terms of office and the method of appointment of officers of the
Institute;
(d) the qualifications of teachers of the Institute;
(e) the classification, method of appointment and the determination of the terms
and conditions of service of teachers and other staff of the Institute;
(f) the constitution of pension, insurance and provident funds for the benefit of
the officers, teachers and other staff of the Institute as per the provisions existing from
time to time;
(g) the constitution, powers and duties of the authorities of the Institute;
(h) the establishment and maintenance of halls and hostels;
(i) the conditions of residence of students of the Institute and the levying of
fees for residence in the halls and hostels and of other charges;
(j) the allowances to be paid to the Chairperson and members of the Board;
(k) the authentication of the orders and decisions of the Board;
(l) the meetings of the Board, the Senate, or any committee, the quorum at such
meetings and the procedure to be followed in the conduct of their business; and
(m) any other matter as may be considered necessary for the efficient functioning
of the Institute.
32. (1) The first Statute of each Institute shall be framed by the Board with the prior
approval of the Visitor.
(2) The Board may, from time to time, make new or additional Statutes or may amend or
repeal the Statutes.
33. Subject to the provisions of this Act and the Statutes, the Ordinances of every
Institute may provide for all or any of the following matters, namely:—
(a) the admission of the students to the Institute;
(b) the courses of study to be laid down for all degrees and diplomas of the
Institute;
(c) the conditions under which students shall be admitted to the degree or
diploma courses and to the examinations of the Institute, and shall be eligible for
degrees and diplomas;
(d) the conditions of award of the fellowships, scholarships, exhibitions, medals
and prizes;
(e) the conditions and mode of appointment and duties of examining bodies,
examiners and moderators;
(f) the conduct of examinations;
(g) the maintenance of discipline among the students of the Institute; and
(h) any other matter which by this Act or the Statutes is to be or may be provided
for by the Ordinances.
34. (1) Save as otherwise provided in this section, Ordinances shall be made by the
Senate.
Ordinances
how to be
made.
Statutes how
to be made.
Ordinances.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 15
(2) All Ordinances made by the Senate shall have effect from such date as it may direct,
but every Ordinance so made shall be submitted, as soon as may be, to the Board and shall
be considered by the Board at its next meeting.
(3) The Board shall have power by resolution to modify or cancel any such Ordinance
and such Ordinance shall from the date of such resolution stand modified accordingly or
cancelled, as the case may be.
35. (1) (a) Any dispute arising out of a contract between an Institute and any of its
employees shall, at the request of the employee concerned or at the instance of the Institute,
be referred to a Tribunal of Arbitration consisting of one member appointed by the Institute,
one member nominated by the employee, and an umpire appointed by the Visitor.
(b) The decision of the Tribunal shall be final and shall not be questioned in any court.
(c) No suit or proceeding shall lie in any court in respect of any matter, which is
required by sub-section (1) to be referred to the Tribunal of Arbitration.
(d) The Tribunal of Arbitration shall have power to regulate its own procedure:
Provided that the Tribunal shall have regard to the principles of natural justice while
making such procedure.
(e) Nothing in any law for the time being in force relating to arbitration shall apply to
arbitrations under this section.
(2) Any student or candidate for an examination whose name has been removed from
the rolls of the Institute by the orders or resolution of the Director of the Institute and who
has been debarred from appearing at the examinations of the Institute for more than one year,
may within ten days of the date of receipt of such resolution by him, appeal to the Board who
may confirm, modify or reverse the decision of the Director.
(3) Any dispute arising out of any disciplinary action taken by the Institute against a
student shall, at the request of such student, be referred to a Tribunal of Arbitration and the
provisions of sub-section (1) shall, as far as may be, apply to a reference made under this
sub-section.
(4) Every employee or student of the Institute, notwithstanding anything contained in
this Act, have a right to appeal within such time as may be laid down by the Statutes, to the
Board of Governors against the decision of any officer or authority of the Institute, as the
case may be, and thereupon the Board may confirm, modify or reverse the decision appealed
against.
36. (1) There shall be attached to every statement of accounts laid before the Board of
each Institute, a report by its Director, with respect to—
(a) the state of affairs of such Institute;
(b) the amount, if any, which it proposes to carry forward to any surplus reserves
in its balance sheet;
(c) the extent to which understatement or overstatement of any surplus of income
over expenditure or any shortfall of expenditure over income has been indicated in the
auditor's report and the reasons for such understatement or overstatement;
(d) the productivity of research projects undertaken by the Institute measured in
accordance with such norms as may be specified by any statutory regulatory authority;
(e) appointments of the officers and teachers of the Institute;
(f) benchmark and internal standards set by the Institute, including the nature of
innovations in teaching, research and application of knowledge.
Tribunal of
Arbitration.
Annual report
of Director.
16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(2) The Director shall also be bound to give the complete information and explanation
in its report on every reservation, qualification or adverse remark contained in the auditors'
report.
37. (1) The annual report of each Institute shall be prepared under the direction of the
Board, which shall include, among other matters, the steps taken by the Institute towards the
fulfilment of its objects and an outcome based assessment of the research being undertaken
in such Institute, and be submitted to the Board on or before such date as may be specified
and the Board shall consider the report in its annual meeting.
(2) The annual report as approved by the Board shall be published and placed on the
website of the Institute.
(3) The Board shall prepare and release for every year a report, in English and in Hindi,
the working of the Institute in the previous year on or before the expiry of nine months from
the close of financial year, and a copy of the same, together with an audited statement of
accounts showing the income and expenditure for the previous year shall be submitted to
the Central Government and the concerned State Government within that stipulated time,
and the same may be caused to be laid before each House of Parliament and the concerned
State Legislature.