(1) Whenever the Director is satisfied that the Management of any educational institution has neglected to perform any of the duties imposed on it by or under any law for the time being in force, or the memorandum of association, or any instrument (including any rules, regulations or by-laws) which regulates its administration or is being managed in a manner detrimental to public interest, and that it is expedient in the public interest, and in particular, in the interest of education imparted in such institution to take over the management of such institution in so far as its activity relates to imparting education, he may, notwithstanding anything contained in any law for the time being in force, after giving the management of such institution, a reasonable opportunity of showing cause against the proposed action, by an order take over the management of such institution in so far as its activity relates to imparting education specified in the order for a limited period not exceeding three years :
Provided that, where the management of an institution has been taken over for a period of three years, the Director may, if he is of opinion that in order to secure proper management of the institution, it is expedient that such management should continue to be in force after the expiry of the said limited period, he may from time to time, by an order issue directions for the continuance of such management for such period not exceeding one year at a time as he may think fit, so however, that the total period for which such management is taken over shall not, in any case, exceed five years :
Provided further that, no such show cause notice shall be necessary where the Director is satisfied that the Management or a majority of persons in control thereof are members of an organisation which is or whose members or persons in control thereof are or have been indulging in activities which are prejudicial to the internal security, the public safety and the maintenance of public order in the State and such activities are reflected in the course of management and administration of the institution.
(2) Whenever the management of any institution is taken over under sub-section (1), every person in-charge of the management of such institution immediately before the appointed date shall deliver possession of the property of the institution to the Director or any officer authorised by him in this behalf (being property which in the opinion of the Director is essential or necessary for the management of the institution).
(3) After taking over the management of any institution under this section, the Director may, with a view to maintaining continuity of education imparted in such institution, and in the interests of the students attending it, arrange to manage the institution through one or more Administrators appointed under section 4.
(4) Any Management, which is aggrieved by the order of a Director under sub-section (1), may make an appeal to the State Government within a period of 15 days from the date of receipt of the order of the Director. The State Government may after considering the representation made by the Management and the order of the Director pass such order, including an order for the restoration of the Management or for the reduction of the period during which the management of such institution shall remain vested in the Administrator as it may deem fit.
(5) The decision of the Director, subject to the decision of the State Government in the appeal, and the decision of the State Government in the appeal, shall be final and shall not be called in question in any court.
(6) Where the management of an institution has been taken over under this section, the Administrator shall pay such rent as may be payable for the building of the institution to the person entitled to receive it as was being paid by the Management immediately before the appointed date. If the rent is payable to the Management, then such rent shall not be paid to the Management, but it shall remain at the disposal of the Administrator for the management, maintenance and administration of the institution.
(7) During such period as any institution remains under the management of an Administrator,-
(a) the service conditions, as approved by the Director, of the employees shall not be varied to their disadvantage ;
(b) such educational facilities as may be approved by the Director and which the institution had been affording immediately before the appointed date shall continue to be afforded ;
(c) all fees, all grants and all other receipts of the institution (being fees, grants or receipts as relate to its activity of imparting education therein) shall continue to be available to the Administrator for being spent for the purposes of the institution ;
(d) no resolution passed at any meeting of the Management of such institution shall be given effect to unless approved by the Director ; and
(e) it shall be lawful for the Administrator to terminate the services of any employee who in his opinion is acting in any manner detrimental to the interest of the institution or education imparted therein after giving the employee a reasonable opportunity of showing cause against the proposed action ;
(f) the employee who is aggrieved by any order of the Administrator may, within 21 days of receipt of the order terminating his services, appeal to the Director whose decision in the matter shall be final and conclusive and shall not be called in question in any court.
Provided that, where the management of an institution has been taken over for a period of three years, the Director may, if he is of opinion that in order to secure proper management of the institution, it is expedient that such management should continue to be in force after the expiry of the said limited period, he may from time to time, by an order issue directions for the continuance of such management for such period not exceeding one year at a time as he may think fit, so however, that the total period for which such management is taken over shall not, in any case, exceed five years :
Provided further that, no such show cause notice shall be necessary where the Director is satisfied that the Management or a majority of persons in control thereof are members of an organisation which is or whose members or persons in control thereof are or have been indulging in activities which are prejudicial to the internal security, the public safety and the maintenance of public order in the State and such activities are reflected in the course of management and administration of the institution.
(2) Whenever the management of any institution is taken over under sub-section (1), every person in-charge of the management of such institution immediately before the appointed date shall deliver possession of the property of the institution to the Director or any officer authorised by him in this behalf (being property which in the opinion of the Director is essential or necessary for the management of the institution).
(3) After taking over the management of any institution under this section, the Director may, with a view to maintaining continuity of education imparted in such institution, and in the interests of the students attending it, arrange to manage the institution through one or more Administrators appointed under section 4.
(4) Any Management, which is aggrieved by the order of a Director under sub-section (1), may make an appeal to the State Government within a period of 15 days from the date of receipt of the order of the Director. The State Government may after considering the representation made by the Management and the order of the Director pass such order, including an order for the restoration of the Management or for the reduction of the period during which the management of such institution shall remain vested in the Administrator as it may deem fit.
(5) The decision of the Director, subject to the decision of the State Government in the appeal, and the decision of the State Government in the appeal, shall be final and shall not be called in question in any court.
(6) Where the management of an institution has been taken over under this section, the Administrator shall pay such rent as may be payable for the building of the institution to the person entitled to receive it as was being paid by the Management immediately before the appointed date. If the rent is payable to the Management, then such rent shall not be paid to the Management, but it shall remain at the disposal of the Administrator for the management, maintenance and administration of the institution.
(7) During such period as any institution remains under the management of an Administrator,-
(a) the service conditions, as approved by the Director, of the employees shall not be varied to their disadvantage ;
(b) such educational facilities as may be approved by the Director and which the institution had been affording immediately before the appointed date shall continue to be afforded ;
(c) all fees, all grants and all other receipts of the institution (being fees, grants or receipts as relate to its activity of imparting education therein) shall continue to be available to the Administrator for being spent for the purposes of the institution ;
(d) no resolution passed at any meeting of the Management of such institution shall be given effect to unless approved by the Director ; and
(e) it shall be lawful for the Administrator to terminate the services of any employee who in his opinion is acting in any manner detrimental to the interest of the institution or education imparted therein after giving the employee a reasonable opportunity of showing cause against the proposed action ;
(f) the employee who is aggrieved by any order of the Administrator may, within 21 days of receipt of the order terminating his services, appeal to the Director whose decision in the matter shall be final and conclusive and shall not be called in question in any court.
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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 4 · Administrators.Section 5 · Advisory Committee.Section 6 · Powers of Administrator.Section 6A · Obligation of Management to pay to Government expenditure on remuneration of Administrator and allowances of Advisory Committee and share of other expenditure of the institution.Section 7 · Provisions in case of refusal to hand over management to Administrator.Section 8 · Handing over of institution back to Management.India Code, Government of India. Text fetched 18 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.