12. Functions of the Commission.—It shall be the general duty of the Commission to take, in
consultation with the Universities or other bodies concerned, all such steps as it may think fit for the
promotion and co-ordination of University education and for the determination and maintenance of
standards of teaching, examination and research in Universities, and for the purpose of performing its
functions under this Act, the Commission may—
(a) inquire into the financial needs of Universities;
1. Subs. by Act 33 of 1972, s. 4, for sub-sections (3) and (4) (w.e.f. 17-6-1972).
6
(b) allocate and disburse, out of the Fund of the Commission, grants to Universities established or
incorporated by or under a Central Act for the maintenance and development of such Universities or
for any other general or specified purpose;
(c) allocate and disburse, out of the Fund of the Commission, such grants to other Universities as
it may deem 1
[necessary or appropriate for the development of such Universities or for the
maintenance, or development, or both, of any specified activities of such Universities] or for any
other general or specified purpose:
Provided that in making any grant to any such University, the Commission shall give due
consideration to the development of the University concerned, its financial needs, the standard
attained by it and the national purposes which it may serve;
2
[(cc) allocate and disburse out of the Fund of the Commission, such grants to institutions deemed
to be Universities in pursuance of a declaration made by the Central Government under section 3, as
it may deem necessary, for one or more of the following purposes, namely:—
(i) for maintenance in special cases,
(ii) for development,
(iii) for any other general or specified purpose;]
3
[(ccc) establish, in accordance with the regulations made under this Act, institutions for
providing common facilities, services and programmes for a group of universities or for the
universities in general and maintain such institutions or provide for their maintenance by allocating
and disbursing out of the Fund of the Commission such grants as the Commission may deem
necessary;]
(d) recommend to any University the measures necessary for the improvement of University
education and advise the University upon the action to be taken for the purpose of implementing such
recommendation;
(e) advise the Central Government or any State Government on the allocation of any grants to
Universities for any general or specified purpose out of the Consolidated Fund of India or the
Consolidated Fund of the State, as the case may be;
(f) advise any authority, if such advise is asked for, on the establishment of a new University or
on proposals connected with the expansion of the activities of any University;
(g) advise the Central Government or any State Government or University on any question which
may be referred to the Commission by the Central Government or the State Government or the
University, as the case may be;
(h) collect information on all such matters relating to University education in India and other
countries as it thinks fit and make the same available to any University;
(i) require a University to furnish it with such information as may be needed relating to the
financial position of the University or the studies in the various branches of learning undertaken in
that University, together with all the rules and regulations relating to the standards of teaching and
examination in that University respecting each of such branches of learning;
(j) perform such other functions as may be prescribed or as may be deemed necessary by the
Commission for advancing the cause of higher education in India or as may be incidental or
conducive to the discharge of the above functions.
1. Subs. by Act 33 of 1972, s. 5, for “necessary for the development of such Universities” (w.e.f. 17-6-1972).
2. Ins. by s. 5, ibid. (w.e.f. 17-6-1972).
3. Ins. by Act 59 of 1984, s. 2 (w.e.f. 1-10-1984).
7
1
[12A. Regulation of fees and prohibition of donations in certain cases.—(1) In this section,—
(a) “affiliation”, together with its grammatical variations includes, in relation to a college,
recognition of such college by, association of such college with, and admission of such college to the
privileges of, a university;
(b) “college” means any institution, whether known as such of by any other name which provides
for a course of study for obtaining any qualification from a university and which, in accordance with
the rules and regulations of such university, is recognised as competent to provide for such course of
study and present students undergoing such course of study for the examination for the award of such
qualification;
(c) “prosecution”, in relation to a course of study, includes promotion from one part or stage of
the course of study to another part or stage of the course of study;
(d) “qualification” means a degree or any other qualification awarded by a university;
(e) “regulations” means regulations made under this Act;
(f) “specified course of study” means a course of study in respect of which regulations of the
nature mentioned in sub-section (2) have been made;
(g) “student” includes a person seeking admission as a student;
(h) “university” means a university or institution referred to in sub-section (1) of section 22.
(2) Without prejudice to the generality of the provisions of section 12 if, having regard to—
(a) the nature of any course of study for obtaining any qualification from any university;
(b) the types of activities in which persons obtaining such qualification are likely to be engaged
on the basis of such qualification;
(c) the minimum standards which a person possessing such qualification should be able to
maintain in his work relating to such activities and the consequent need for ensuring, so far as may
be, that no candidate secures admission to such course of study by reason of economic power and
thereby prevents a more meritorious candidate from securing admission to such course of study; and
(d) all other relevant factors,
the Commission is satisfied that it is necessary so to do in the public interest, it may, after
consultation with the university or universities concerned, specify by regulations the matters in
respect of which fees may be charged, and the scale of fees in accordance with which fees shall be
charged in respect of those matters on and from such date as may be specified in the regulations in
this behalf, by any college providing for such course of study from, or in relation to, any student in
connection with his admission to, and prosecution of, such course of study:
Provided that different matters and different scales of fees may be so specified in relation to
different universities or different classes of colleges or different areas.
(3) Where regulations of the nature referred to in sub-section (2) have been made in relation to any
course of study, no college providing for such course of study shall—
(a) levy or charge fees in respect of any matter other than a matter specified in such regulations;
(b) levy or charge any fees in excess of the scale of fees specified in such regulations, or
(c) accept, either directly or indirectly, any payment (otherwise than by way of fees) or any
donation or gift (whether in cash or kind),
from, or in relation to, any student in connection with his admission to, and prosecution of, such course of
study.
1. Ins. by Act 59 of 1984, s. 3 (w.e.f. 1-10-1984).
8
(4) If, after making, in relation to a college providing for a specified course of study, an inquiry in the
manner provided by regulations, and after giving such college a reasonable opportunity of being heard,
the Commission is satisfied that such college has contravened the provisions of sub-section (3), the
Commission may, with the previous approval of the Central Government, pass an order prohibiting such
college from presenting any students then undergoing such course of study therein to any university for
the award of the qualification concerned.
(5) The Commission shall forward a copy of the order made by it under sub-section (4) to the
university concerned, and on and from the date of receipt by the University of a copy of such order, the
affiliation of such college to such university shall, in so far as it relates to the course of study specified in
such order, stand terminated and on and from the date of termination of such affiliation and for a period of
three years thereafter affiliation shall not be granted to such college in relation to such or similar course of
study by that or any other university.
(6) On the termination of the affiliation of any college under sub-section (5), the Commission shall
take all such steps as it may consider appropriate for safeguarding the interests of the students concerned.
(7) The provisions of this section and the regulations made for the purposes of this section shall have
effect notwithstanding anything inconsistent therewith contained in any other law for the time being in
force.]
1
[
2
12B.] Prohibition regarding giving of any grant to a University not declared by the
Commission fit to receive such grant.—No grant shall be given by the Central Government, the
Commission, or any other organisation receiving any funds from the Central Government, to a University
which is established after the commencement of the University Grants Commission (Amendment)
Act, 1972 (33 of 1972), unless the Commission has, after satisfying itself as to such matters as may be
prescribed, declared such University to be fit for receiving such grant.]
13. Inspection.—(1) For the purpose of ascertaining the financial needs of a University or its
standards of teaching, examination and research, the Commission may, after consultation with the
University, cause an inspection of any department or departments thereof to be made in such manner as
may be prescribed and by such person or persons as it may direct.
(2) The Commission shall communicate to the University the date on which any inspection under
sub-section (1) is to be made and the University shall be entitled to be associated with the inspection in
such manner as may be prescribed.
(3) The Commission shall communicate to the University its views in regard to the results of any such
inspection and may, after ascertaining the opinion of the University, recommend to the University the
action to be taken as a result of such inspection.
(4) All communications to a University under this section shall be made to the executive authority
thereof and the executive authority of the University shall report to the Commission the action, if any,
which is proposed to be taken for the purpose of implementing any such recommendation as is referred to
in sub-section (3).
14. Consequences of failure of Universities to comply with recommendations of the
Commission.—If any University 3
[grants affiliation in respect of any course of study to any college
referred to in sub-section (5) of section 12A in contravention of the provisions of that sub-section or] fails
within a reasonable time to comply with any recommendation made by the Commission under section 12
or section 13, 4
[or contravenes the provisions of any rule made under clause (f) or clause (g) of
sub-section (2) of section 25, or of any regulation made under clause (e) or clause (f) or clause (g) of
section 26,] the Commission, after taking into consideration the cause, if any, shown by the University
5
[for such failure or contravention,] may withhold from the University the grants proposed to be made out
of the Fund of the Commission.
1. Ins. by Act 33 of 1972, s. 6 (w.e.f. 17-6-1972).
2. Section 12A renumbered as section 12B of that section by Act 59 of 1984, s. 3 (w.e.f. 1-10-1984).
3. Ins. by s. 4, ibid. (w.e.f. 1-10-1984).
4. Ins. by Act 33 of 1972, s. 7 (w.e.f. 17-6-1972).
5. Subs. by s. 7, ibid., for “for its failure to comply with such recommendation” (w.e.f. 17-6-1972).
9
15. Payment to the Commission.—The Central Government may, after due appropriation made by
Parliament by law in this behalf, pay to the Commission in each financial year such sums as may be
considered necessary for the performance of the functions of the Commission under this Act.
16. Fund of the Commission.—(1) The Commission shall have its own Fund; and all sums which
may, from time to time, be paid to it by the Central Government and all the receipts of the Commission
(including any sum which any State Government or any other authority or person may hand over to the
Commission) shall be carried to the Fund and all payments by the Commission shall be made therefrom.
(2) All moneys belonging to the Fund shall be deposited in such banks or invested in such manner as
may, subject to the approval of the Central Government, be decided by the Commission.
(3) The Commission may spend such sums as it thinks fit for performing its functions under this Act,
and such sums shall be treated as expenditure payable out of the Fund of the Commission.
17. Budget.—The Commission shall prepare, in such form and at such time each year as may be
prescribed, a budget in respect of the financial year next ensuing showing the estimated receipts and
expenditure, and copies thereof shall be forwarded to the Central Government.
18. Annual report.—The Commission shall prepare once every year, in such form and at such time
as may be prescribed, an annual report giving a true and full account of its activities during the previous
year, and copies thereof shall be forwarded to the Central Government and the Government shall cause
the same to be laid before both Houses of Parliament.
19. Account and audit.—(1) The Commission shall cause to be maintained such books of account
and other books in relation to its account in such form and in such manner as may, in consultation with
the Comptroller and Auditor-General of India, be prescribed.
(2) The Commission shall, as soon as may be after closing its annual accounts, prepare a statement of
accounts in such form, and forward the same to the Comptroller and Auditor-General by such date, as the
Central Government may, in consultation with the Comptroller and Auditor-General, determine.
(3) The accounts of the Commission shall be audited by the Comptroller and Auditor-General at such
times and in such manner as he thinks fit.
(4) The annual accounts of the Commission together with the audit report thereon shall be forwarded
to the Central Government and the Government shall cause the same to be laid before both Houses of
Parliament and shall also forward a copy of the audit report to the Commission for taking suitable action
on the matters arising out of the audit report.