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Karnataka · 2023 · Bare Act

THE ACHARYA UNIVERSITY ACT, 2022

English · 21of2023(e)acharya.pdf.txt

 

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KARNATAKA ACT NO.21 OF 2023 

 

THE ACHARYA UNIVERSITY ACT, 2022 

Arrangement of Section 

Sections: 

 

1. Short title, extent and commencement 

2. Definitions 

3. Proposal for the establishment of the University 

4.  Establishment of the University 

5. Grants and Financial Assistance 

6. Power to establish constituent College, additional campuses, Regional Centres or  

    Study Centres 

7. Objects of the University 

8. Powers of the University 

9. University open to all classes, Castes, creed, gender or nation 

10. Powers of the sponsoring body 

11. Officers of the University 

12. The Visitor 

13. The Pro-Visitor 

14. The Chancellor 

15. The Pro-Chancellor 

16. The Vice-Chancellor 

17. The Pro Vice-Chancellor 

18. Deans of faculties 

19. Appointments in the University 

20. The Registrar 

21. The Finance Officer 

22. Other Officers 

23. Authorities of the University 

24. The Board of Governors and its powers 

25. The Board of Management 

26. The Academic Council 

27. The Research and Innovation Council 

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28. The Finance Committee 

29. Other Authorities 

30. Disqualification for membership of an Authority or Body 

31. Proceedings not invalidated on account of vacancy  

32. Provisions pertaining to Agenda matters 

33. Statutes 

34. Statutes how made 

35. Power to amend the Statutes 

36. Regulations 

37. Academic Regulations how made 

38. Power to amend Regulations 

39. Fixation of fee 

40. Publication of Mandatory Disclosures in the University website 

41. Conditions of service of employees 

42. Right to appeal 

43. Provident or Pension Fund 

44. Disputes as to constitution of the University authorities and bodies 

45. Constitution of Committees 

46. Filling of casual vacancies 

47. Transitional provisions 

48. Permanent Statutory Endowment Fund 

49. University Endowment Fund 

50. General Fund 

51. Development fund 

52. Maintenance of funds 

53. Annual Report 

54. Accounts and audit 

55. Mode of proof of University record 

56. Power of Government to issue directions 

57. Penalties 

58. Power to enter and inspect 

59. Power to give direction for dissolution of the University 

60. Expenditure of the University during dissolution 

61.  Temporary taking over of management of the University in public interest 

62. Relinquishment of management of the University 



 

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63. Penalty for obstructing officer or other person exercising powers under this Act 

64. Punishment for abetment of offences 

65. Offences by companies 

66. Removal of difficulties 

67. Power to make rules by the Government 

 

STATEMENT OF OBJECTS AND REASONS 

Act 21 of 2023.- JMJ Education Society (R), Bengaluru has come forward to 

establish private University in the State.  The establishment of a private University 

by a well known organization would certainly help in spreading the quality 

education to the needy students.  This also accelerates the enhancement of gross 

enrolment ratio in Higher Education sector. 

It is considered necessary to provide for establishment of a private university 

of unitary nature in the name of the Acharya University by the JMJ Education 

Society (R), Bengaluru. 

 This private University focuses on to promote and undertake the 

advancement of applied university in all branches of Engineering,  Pure Science, 

Arts, Management, Commerce, Social Sciences, and Humanities, Education. 

 

Accordingly, it becomes imperative to enact a new legislation for the 

establishment and incorporation of a University of unitary nature in private sector 

by the JMJ Education Society (R), Bengaluru. 

 Hence, the Bill 

[L.A. Bill No. 41 of 2022, File No. SAMVYASHAE  35 SHASANA 2022]  

[Entry 25 of List III of the Seventh Schedule to the Constitution of India.]   

[Published in Karnataka Gazette Extra-ordinary No.146 in part-IVA 

dated:31.03.2023] 

 

  



 

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KARNATAKA ACT NO.21 OF 2023 

(First Published in the Karnataka Gazette Extra-ordinary on the 31st  day of March, 

2023) 

 

 

THE ACHARYA UNIVERSITY ACT, 2022 

(Received the assent of the Governor on the 13th day of March 2023) 

 

An Act to establish and incorporate in the State of Karnataka a University of 

unitary in nature in private sector by the JMJ Education Society (R), Bengaluru to 

promote and undertake the advancement of applied University education in all 

branches of Engineering, Pure Science, Arts, Management, Commerce, Social 

Sciences, Humanities and for the matters connected therewith or incidental 

thereto. 

Whereas it is expedient to establish and incorporate in the State of 

Karnataka a University of unitary in nature in private sector by the JMJ Education 

Society (R), Bengaluru to promote and undertake the advancement of applied 

University education in all branches of Engineering, Architecture and Design, Pure 

Science, Arts, Management, Commerce, Social Sciences  and Humanities, and for 

the matters connected therewith or incidental thereto for the purposes hereinafter 

appearing.   

Be it enacted by the Karnataka State Legislature in the seventy third year of 

the Republic of India as follows:- 

CHAPTER-I 

PRELIMINARY 

       1. Short title, extent and commencement.– (1) This Act may be called the 

Acharya  University Act, 2022. 

(2) It extends to the whole of the State of Karnataka. 

(3) It shall come into force on such date as the Government may, by 

notification, in the official Gazette, appoint. 

2. Definitions.– In this Act, unless the context otherwise requires,- 

(a)  “Academic Council” means the Academic Council of the University as 

specified in section 26; 

(b) “Agenda Matters” means all the matters and business to be designated in 

the Statutes each of which can be either included in the Agenda or be 



 

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taken up for discussion and decision at a meeting of the Board of 

Governors or the Board of Management or academic council or other 

authority of the University or any Committees, as the case may be, only 

subject to the prior written approval of the Chancellor, consenting to the 

passing of such matters and business at such a meeting; 

(c) “Board of Governors” means the Board of Governors of the University as 

specified in section 24; 

(d) “Board of Management” means the Board of Management of the 

University as specified in section 25; 

(e) “Chancellor”, “Vice-Chancellor”, “Pro Vice-Chancellor” means respectively 

the Chancellor, Vice Chancellor and Pro Vice-Chancellor of the 

University. 

(f) “Campus” means a campus established, maintained by the University, 

situated within the State; 

(g) “Committees” means the committees formed under this Act or by the 

various functionaries of the University as the case may be and includes 

the Nomination Committee, the Finance Committee and such other 

committees; 

(h) “Constituent College” means a college or institution established and 

maintained by the University; 

(i) “Finance Committee” means the Finance Committee of the University as 

specified in section 28; 

(j) “Government” means the Government of Karnataka; 

(k) “National Regulatory Bodies” means a body established by the Central 

Government for laying down norms and conditions for ensuring academic 

standards of higher education, such as University Grants Commission, 

All India Council of Technical Education, Council of Architecture, and 

includes the Government; 

(l) “Prescribed” means prescribed by rules made by the Government under 

this Act; 

(m) “Principal in relation to a Constituent College” means the head of the 

Constituent College and includes, where there is no Principal or in the 

absence of the Principal appointed, the Vice-Principal or any other person 

for the time being appointed to act as Principal; 

(n) “Registrar” means the Registrar of the University; 



 

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(o) “Regional Centre” means a centre established or maintained by the 

University for the purpose of coordinating and supervising the work of 

Study Centers in any region within the State and for performing such 

other functions as may be conferred on such centre by the Board of 

Management; 

(p) “Society” means the JMJ Education Society (R) registered under the 

Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960);  

(q) "Private University" means a university duly established through a state 

Act by a sponsoring body viz. a Society registered under the Societies 

Registration Act 1860, or any other corresponding law for the time being 

in force in a State of a Public Trust or a company register under section 

25 of the Companies Act, 1956;  

(r) “Sponsoring Authority” or “Sponsoring Body” in relation to this Act 

means the JMJ Education Society;  

(s) “State” means State of Karnataka; 

(t) “Statutes” and “Regulations” means respectively, the Statutes and 

Regulations of the University made under this Act; 

(u) “Study Centre” means a centre within the State established and 

maintained by the University for the purpose of advising, counseling or 

for rendering any other assistance required by the students in the 

context of the education; 

(v) “Teacher” means and includes a Professor, Associate Professor, Assistant 

Professor, appointed as per University Grants Commission/All India 

Council of Technical Education regulations drawing salary as per pay 

scale of University Grants Commission/All India Council of Technical 

Education norms as applicable or such other person as maybe appointed 

for imparting instruction as per University Grants Commission/ All India 

Council of Technical Education norms and drawing salary as per pay 

scale of University Grants Commission/ All India Council of Technical 

Education norms as applicable or conducting or to guide research in the 

University or in a constituent college and includes the Principal of 

conformity with the norms Specified by the University Grants 

Commission; 

(w)  “University” means “the Acharya  University”; 



 

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(x)  “University Grants Commission” means the Commission established 

under section 4 of the University Grants Commission Act, 1956 (Central 

Act 3 of 1956); and 

(y)  “Visitor” means the visitor of the University as specified in section 12. 

CHAPTER-II 

THE UNIVERSITY AND SPONSORING BODY 

3. Proposal for the establishment of the University.- (1) The society shall 

have the right to establish the University of Unitary in nature subject to and in 

accordance with the provisions of this Act. 

       (2) The proposal to establish a University shall be made to the Government by 

the society. 

       (3) The proposal shall contain the following particulars, namely:-  

(i) the objects of the University along with the details of the Society; 

    (ii) the extent and status of the University and the availability                          

of   land and the land shall be in the name of the society;   

(iii)  the nature and type of programmes of study and research to be 

undertaken by the University during a period of five academic 

years immediately following the commencement date;  

(iv)  the nature of faculties, courses of study and research proposed to 

be started;  

(v) the campus development such as buildings, equipment and 

structural amenities;  

(vi) the phased outlays of capital expenditure for a period of five 

academic years immediately following the commencement date; 

(vii) the item-wise recurring expenditure, sources of finance and 

estimated expenditure for each student;  

(viii)the scheme for mobilizing resources and the cost of capital 

thereto and the manner of repayments to each source; 

(ix)  the scheme of generation of funds internally through the recovery 

of fee from students, revenues anticipated from consultancy and 

other activities relating to the objects of the University and other 

anticipated incomes;  

 (x) the details of expenditure on unit cost, the extent of concessions 

or rebates in fee, freeship and scholarship for students belonging 

to economically weaker sections and the fee structure indicating 



 

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varying rate of fee, if any, that would be levied on students who 

are either non resident Indians or persons of Indian origin or 

sponsored by non resident Indians or person of Indian origin and 

students of nationalities other than India. 

                    (xi)  the years of experience and expertise in the concerned discipline 

at the command of the society as well as the financial resources;  

(xii) the system for selection of students to the courses of study at the 

University; and 

(xiii) status of fulfillment of such other conditions as may be required 

by the Government under this Act to be fulfilled before the 

establishment of the University. 

(4) A Screening Committee shall be constituted by the Government 

consisting of three members who are Ex-officio members of Karnataka State Higher 

Education Council to examine the proposals received from the society which has to 

make recommendations to the Government for the establishment of the University. 

4.  Establishment of the University.- (1) Where the Government, after 

considering the recommendations of the Screening Committee and holding such 

inquiry as it may deem  necessary, is satisfied that,-  

(i) the society has ability to run an University with sufficient  infrastructure; 

(ii)  is the sole owner of land to the extent of twenty acres;   

(iii) land in the name of society  to the extent specified below in accordance 

with its location, namely:-  

(a) The Land shall be in single block or two blocks only including 

whole area in the limits of  Bruhat Bengaluru Mahanagara Palike 

as well as Bengaluru metropolitan Region Development Authority; 

(b) It shall be in single block or two blocks within the limits of 

Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi, 

Tumakuru, Ballari, Shivamogga, Davangere and Vijayapura 

Municipal Corporation and related planning areas. 

(c) Single block or two blocks in the Places other than the places 

specified in clause (a) and (b): 

Provided that, the university shall fulfill all other conditions specified in 

Government Order No. ED/449/URC/2016, dated: 24.01.2017 and with 

amendments.  



 

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(iv) Adequate financial resources for creating the specified Statutory Funds 

and conducting the University affairs; and  

 (v) experience/expertise in running higher Education Institutions. 
 

Based on the furnished particulars required in sub-section (3) of section 3, 

the Government may direct the Society to establish the permanent Statutory 

Endowment Fund as specified in section 48. 

 (2) After the establishment of the Permanent Statutory Endowment Fund, 

the Government may, by notification, in the official Gazette, accord sanction for 

establishment of the University of Unitary in nature in the State by the name of 

Acharya University. 

    (3) The headquarters of the University shall be at Soladevanahalli, 

Bengaluru rural district. The University shall have Campuses or Regional Centres, 

Study: Centres anywhere in Karnataka after five years of establishment of the 

university subject to the prior permission of the University Grants Commission and 

then the Government.  

    (4) The First Chancellor, the First Vice- Chancellor, the First Pro-Vice- 

Chancellor, the First members of the Board of Governors, First members of the 

Board of Management and the Academic Council and all persons who may 

hereafter become such officers or members, so long as they continue to hold such 

office or membership, shall constitute a body corporate and can sue and be sued in 

the name of the University.  

   (5) On sanction for the establishment of the University under sub-section (2), 

the land and other movable and immovable properties acquired, created, arranged 

or built by the Society for the purpose of the University shall vest in the University. 

   (6) In all suits and other legal proceedings by or against the University, the 

pleading shall be signed and verified by, and all processes in such suits and 

proceedings shall be issued to and be served on the Registrar. 

  (7) The land, building and other properties of the University shall not be used 

for any purpose other than incidental to the objects of the University.  

      (8)  The university shall fulfill the minimum criteria in terms of programmes, 

faculty, infrastructural facilities, financial viability, etc., as laid down from time to 

time by the University Grants Commission and other concerned statutory bodies 

such as the All India Council for Technical Education (AICTE). 

       (9) The courses of studies prescribed for a first degree and/or the post-

graduate degree or diploma programmes shall have been formally approved by the 



 

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respective academic bodies of the university, such as Board of Studies, Academic 

council and Governing or Executive Council and Board of Governors.   

          (10) The programmes of study leading to a degree and/or a post-graduate 

degree or diploma offered by the university shall conform to the relevant 

regulations or as per University Grants Commission or the concerned statutory 

body as amended from time to time.  

          (11) The university shall provide all the relevant information relating to the 

first degree and post graduate degree or diploma programme(s) including the 

curriculum structure, contents, teaching and learning process, examination and 

evaluation system and the eligibility criteria for admission of students, to the 

University Grants Commission on a proforma prescribed by the University Grants 

Commission prior to starting of these programmes and the same shall also be 

published in the university website as Mandatory Disclosure and a copy of it shall 

also be submitted to the Government.    

           (12) The University Grants Commission on detailed examination of the 

information made available as well as the representations and grievances received 

by it from the students as well as concerned public relating to the deficiencies of 

the proposed programmes not conforming to various University Grants Commission 

Regulations, shall inform the concerned university about any shortcomings in 

respect of conformity to relevant regulations, for rectification. The university shall 

offer the programmes only after necessary rectification. The University shall inform 

immediately about such reports from the University Grants Commission to the 

Government and also about the action taken report on such rectifications 

recommended by the University Grants Commission. 

           (13) The admission procedure and fixation of fees shall be in accordance 

with the norms/guidelines prescribed by the University Grants Commission and 

other concerned statutory bodies and the Government. As a part of mandatory 

disclosure the University shall disclose the number of seats sanctioned for each 

programme, intake and detailed fee structure on its website for information of all 

stakeholders.  

  (14) The University Grants Commission and the Government may cause 

periodic inspection of the university and its off-campus centres, study centres etc., 

offering its programmes. For this purpose, the University Grants Commission and 

the Government may call for all relevant information from the university, as 



 

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provided in the University Grants Commission (Returns of Information by 

Universities) Rules, 1979 as amended from time to time.  

           (15) After inspection and assessment of the university providing first 

degree and/or post graduate degree or diploma courses, the University Grants 

Commission may indicate to the university any deficiency and non-conformity with 

the relevant University Grants Commission Regulations and give it reasonable 

opportunity to rectify the same. If the Commission is satisfied that the private 

university has, even after getting an opportunity to do so, failed to comply with the 

provisions of any of the Regulations, the Commission may pass an order 

prohibiting the private university from offering any course for the award of the first 

degree and /or the post – graduate degree or diploma, as the case may be, till the 

deficiency is rectified. The university shall communicate the directions given to 

them by University Grants Commissions within fifteen days to the Government. 

(16)  The University Grants Commission and the Government may take 

necessary action against the university awarding a first degree and/ or a post-

graduate degree or diploma and also for the institution of which prior approval was 

not taken from the Government by the university, which are not specified by the 

University Grants Commission, and inform the public in general through a public 

notification. The university continuing such programmes and awarding unspecified 

degrees shall be liable for penalty under section 24 of the University Grants 

Commission Act (Central Act 03 of 1956). 

5. Grants and Financial Assistance.- The University shall be self- financing 

and shall neither make a demand nor shall be entitled to any maintenance grant-

in-aid or any other financial assistance from the State or any other body or 

corporation owned or controlled by the State:  

6. Power to establish constituent College, additional campuses, Regional 

Centres or Study Centres.- The University may have Constituent Colleges, 

Regional Centres, additional campuses and Study Centres at such places in the 

State as it deems fit after the completion of five years after its establishment  

subject to the prior permission of the University Grants Commission and then the 

Government. 

7. Objects of the University.- The University shall employ a broad range of 

strategies to achieve its vision and objectives the University Grants Commission,- 

(i)   to provide instruction, teaching, training, research, consultancy and 

development in various disciplines in areas such as Pure Sciences, all 



 

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branches of Engineering, Architecture and Design, Science, Arts, 

Management, Commerce, Social Sciences, and Humanities Education 

including other allied fields of development and make provisions for 

research, advancement and dissemination of knowledge on these fields;  

(ii)   to design and deliver high quality training, capacity building and 

development systems for teachers in higher and professional education, 

administrators and professionals working in Government, Public and 

Private Sectors and development professionals in other systems; 

(iii) to develop resource centres to contribute to quality education; 

(iv) to establish Campuses and have study centres, Constituent Colleges 

and Regional Centres at various locations in Karnataka after a period of 

five years and to contribute and develop an understanding of 

educational changes in Technical and professional education and social 

and human development as per norms of the University Grants 

Commission subject to the prior permission of the University Grants 

Commission and then the Government. 

(v)   to institute and award degrees, diplomas, certificates and other 

academic distinctions like award of credits on the basis of successful 

completion of academic work evaluated through multiple methods of 

assessment; 

(vi) to collaborate with any other universities, research institutions, non-

profit organizations, industry association, professional associations or 

other organizations, to conceptualize, design, develop and offer specific 

educational and research programmes, training programmes and 

exchange programmes for students, faculty members and others;  

(vii) to disseminate knowledge and develop a public debate on issues of 

education and allied development fields through seminars, conferences, 

executive education programmes, community development 

programmes, publications and training programmes and events;.  

(viii) to undertake programmes for development and training of faculty and 

researchers of the University in partnership with any other institutions 

of quality with prior approval of the Government;  

(ix) to undertake collaborative research and advocacy with any 

organizations with prior approval of the Government; 



 

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(x)   to undertake necessary or expedient action to pursue and promote the 

objectives of the University; and 

(xi) to pursue any objectives as may be approved by the Government for the 

enhancement of the education and other development sectors. 

8. Powers of the University.- The University shall have the following 

powers, namely:-  

(i) to establish and maintain Campuses, Regional Centres and Study 

Centres in Karnataka  after five years from the date of 

establishment of the University as may be determined by the 

University from time to time in the manner laid down by the 

Statutes subject to the prior permission of the University Grants 

Commission and then the Government. 

(ii) to carry out all such other activities as may be necessary or 

feasible in furtherance of the object of the University, 

(iii) to confer degrees or other academic distinctions in the manner 

and under conditions laid down in the Statutes; 

(iv) to institute and award fellowships, scholarships and prizes, 

awards, medals etc., in accordance with the Statutes; 

(v) to demand and receive such fees bills, invoices and collect 

charges as may be fixed by this Act, Statutes and Rules. 

(vi) to make provisions for extracurricular activities for students and 

employees; 

(vii) to make appointments of the Faculty, officers and employees of 

the University or a Constituent College, Campuses, Regional 

Centres and Study Centres;  

(viii) to receive voluntary donations and gifts of any kind not 

prohibited by any Law for the time being in force and to acquire, 

hold, manage, maintain and dispose of any movable or 

immovable property, including society and endowment properties 

for the purpose of the University or a Constituent College or a 

Campus, Regional Centres and Study Centre;  

(ix) to institute and maintain hostels and to recognize places of 

residence for students of the University or a Constituent College;  

(x) to supervise and control the residence and to regulate  the 

discipline among the students and all categories of employees 



 

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and to lay down the conditions of service of such employees, 

including the Code of Conduct for the students and employees; 

(xi) to create academic, administrative and support staff and other 

necessary posts; 

(xii) to co-operate and collaborate with other Universities in such a 

manner and for such purposes as the University may determine 

from time. 

(xiii) to organize and conduct refresher courses, orientation courses, 

workshops, seminars and other programmes for teachers, lesson 

writers, evaluators and other academic staff; 

(xiv)  to determine standards of admission to the University or a 

Constituent College, Regional Centers, Study Centers with the 

approval of Academic Council and to make admission of students 

of Karnataka not less than the extent provided in this Act;  

(xv) to do all such other acts or things whether incidental to the 

powers aforesaid or not, as may be necessary to further the 

objects of the University; 

(xvi)  to institute and award Degrees, Diplomas, Certificates and other 

academic distinctions with the prior approval of the Government 

and concerned statutory authority  on the basis of regular or 

online examination or online evaluation or any other method of 

evaluation approved by the University Grants Commission and 

the Government; 

(xvii) to provide for the preparation of instructional materials, 

including films, cassettes, tapes, video cassettes, CD, VCD, Pen 

Drives and other software and other relevant electronic and print 

media;  

(xviii) to raise, collect, subscribe and borrow money with the approval 

of the Board of Governors whether on the security of the property 

of the University, for the purposes of the University;  

(xix) to acquire and takeover and run the management  of any other 

educational institutions with the prior approval of the 

Government: 

(xx) to acquire properties with the prior approval of the Board of 

Management;  



 

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(xxi) to undertake any other activities connected with or incidental to 

above objectives of the University; and 

(xxii) Mandatory Skill Development courses shall be conducted by 

the University. 

              9. University open to all classes, Castes, creed, gender or nation.- The 

University admissions shall be open to all persons irrespective of caste, class, 

creed, gender or nation.  The criteria for admission programme wise and the 

detailed notification of the time line for admission and the available intake 

programme wise along with the prescribed fees including a break up of fees shall be 

notified as a part of mandatory disclosure on the University‟s website:   

Provided that, forty percent of the admissions in all courses of the university 

shall be reserved for the students of Karnataka State and admissions shall be done 

as below.-  

(i) for Technical and professional Courses admission shall be done on basis 

of the merit list through a Common Entrance Test conducted by the Central 

Government or Government or its agency, as the case may be or through any 

method as specified by the Government from time to time; 

(ii) in case of all non-technical courses the admission shall be done on the 

basis of the merit list prepared on the basis of  marks obtained in the respective 

qualifying exams or through any method as specified by the Government from time 

to time: 

 Provided further that, seats in the above cases in this section shall be 

allotted as per the merit and reservation policy of the Government framed from time 

to time. 

10. Powers of the Sponsoring Body.- The Sponsoring Body shall have the 

following  powers with reference to the University, each of which may be exercised 

by the Sponsoring Body at its discretion, namely:-   

(i) to appoint or re-appoint or terminate the appointment of the 

Chancellor;  

(ii)      to constitute the first Board of Governors of the University; 

(iii)      to nominate the chairperson of the Board of Governors; 

(iv)      to nominate three persons as members of the Board of Governors; 

(v)      to nominate two persons as members of the Board of Management;  

(vi)      to determine the source of funds to be contributed to the University 

Endowment Fund;  



 

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(vii)       to determine the application and spending of monies by the 

University; and 

(viii)      to resolve any conflict at the meeting of the Board of Governors in the 

manner provided for in this Act.  

 

 

CHAPTER - III 

OFFICERS OF THE UNIVERSITY 

11. Officers of the University.- The following shall be the officers of the 

University, namely: - 

(i)     The Visitor; 

(ii) The Pro-visitor; 

(iii) The Chancellor: 

(iv) The Pro-Chancellor; 

(v) The Vice-Chancellor; 

(vi) The Pro Vice-Chancellor; 

(vii) Deans of Faculties; 

(viii) The Registrar; 

(ix) The Finance Officer; and 

(x) Such other officers as may be declared by the Statutes to be officers of the 

University. 

12. The Visitor.- (1) His Excellency the Governor of Karnataka shall be the 

Visitor of the University and the visitor may offer suggestions for the improvement 

of the functioning of the University. 

(2) The Visitor shall preside at the convocation of the University for conferring 

degrees and diplomas. 

(3) The Visitor shall have the following powers, namely:- 

(i) to call for any paper or information relating to the affairs of the 

University; 

(ii) on the basis of the information received by the Visitor and if they are 

satisfied that any order, proceedings or decision taken by any 

authority of the University is not in conformity with the Act, 

Regulations, or Rules, they may issue such directions as they may 

deem fit in the interest of the University and the directions so issued 

shall be complied with by all the concerned.  



 

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   13. The Pro-Visitor.- (1) The Honourable Minister for Higher Education, 

Government of Karnataka shall be the Pro-Visitor of the University. 

(2) The Pro-Visitor shall, when the Visitor is absent, preside at the 

Convocation of the University for conferring degrees and diplomas. 

 

   14. The Chancellor.- (1) The Chancellor shall be appointed by the 

Sponsoring Body.  

(2) A nominee of the Sponsoring Body shall be the first Chancellor, who shall 

hold for life or till he demits office.  

(3) The subsequent Chancellor shall be a member of the Sponsoring Body. 

(4) The Sponsoring Body may appoint Pro-Chancellor who shall be member 

of the Sponsoring Body.  

(5) The subsequent Chancellor so appointed shall hold the office as 

determined by the Sponsoring Body.  

(6) The Chancellor shall have such powers as may be conferred on him by 

this Act or the Statutes made there under, which shall include the following 

powers, namely:- 

(i)     to function as the head of the University; 

(ii)      to preside at all convocations of the University in absence of visitor and 

pro-visitor;  

(iii)     to function as a Chairperson of the Board of Governors of the 

University;  

(iv)      to appoint or re-appoint or terminate the appointment of the Vice-

Chancellor, in accordance with the provisions of this Act and the 

Statutes;  

(v)     to propose the appointment of the Pro Vice-Chancellor, the Dean, the 

Registrar and the Finance Officer; 

(vi)     to appoint the first Pro Vice-Chancellor and the Finance Officer; 

(vii)     to constitute the first Board of Management, the Finance Committee, 

the Research Council and the Academic Council; 

(viii)     to approve the Agenda matters in the manner provided for in the Act; 

and 

(ix)     to resolve a conflict (excluding conflicts at a meeting of the Board of 

Governors) in the manner provided in this Act.  



 

18 
 

(7) In the event of there being a conflict inter-se between the functionary or 

body and any other functionary or body of the University, then the issue shall be 

referred to the Chancellor and the decision of the Chancellor in respect of such 

issue shall be final and binding on the University. 

15. The Pro-Chancellor.- (1) The Pro-Chancellor shall  be appointed by the 

Sponsoring  Body for a term of not exceeding four years prescribed by the 

Sponsoring Body subject to other terms and conditions as may be laid down in the 

statutes. 

(2) The Pro-Chancellor shall exercise all powers of the Chancellor in his 

absence and shall be assigned any additional duties with prior written Approval of 

the Chancellor. 

(3) The Pro-Chancellor shall chair all the Committees, meetings and 

convocations in the absence of the Chancellor.  

 16. The Vice-Chancellor.- (1) The Vice- Chancellor shall be appointed for a  

term of four years by the Chancellor subject to other terms and conditions as may 

be laid down by the Statutes from among three persons recommended by the 

Nomination Committee constituted in accordance with the provisions of sub- 

section (2). The vice-chancellor shall not continue in office after the age of sixty 

seven years. 

 (2) The Nomination Committee referred to in sub-section (1) shall consist of 

the following persons, namely:- 

(i)  One person nominated by the Sponsoring Body, who shall be the 

convener of the nomination committee. 

(ii) One person nominated by the Board of Governors; and  

(iii) One person nominated by the Academic Council;  

 (3) The Nomination Committee shall, on the basis of merit, recommend 

three persons suitable to hold the office of the Vice-Chancellor and forward the 

same to the Chancellor along with a concise statement showing the academic 

qualifications and other distinctions of each person.  

(4) The Vice-Chancellor shall be the Principal Executive and Academic 

Officer of the University and shall exercise general supervision and control over the 

affairs of the University and give effect to the decisions of the authorities of the 

University: 

Provided that, where any matter, other than the appointment of a Teacher is 

of urgent nature requiring immediate action and the same could not be 



 

19 
 

immediately dealt with by any officer or the authority or other body of the 

University empowered by or under this Act to deal with it, the Vice-Chancellor may 

take such action as he may deem fit with the prior written approval of the 

Chancellor.  

(5) The Vice-Chancellor shall exercise such other powers and perform such 

other duties as may be laid down by the Statutes or the Rules: 

Provided that, where in the opinion of the Vice-chancellor, any  decision of any 

authority of the university is outside the powers conferred by this Act or Statutes, 

Regulations or Rules made there under or is likely to be prejudicial to the interests 

of the university, he shall request the concerned authority to revise its decision 

within fifteen days from the date of its decision and in case the authority refuses to 

revise such decision wholly or partly or fails to take any decision within fifteen 

days, then such matter shall be referred to the Chancellor and his decision thereon 

shall be final.  

(6) The services of the Vice-Chancellor can be terminated by the Chancellor 

with the approval of the Board of Governors after following the principles of natural 

justice and after providing an opportunity to present his case including, for 

termination on, disciplinary grounds. 

(7) The Vice-Chancellor shall preside at the Convocation of the University in 

the absence of the Visitor, Pro-Visitor, the Chancellor and the Pro-Chancellor. 

17. The Pro Vice-Chancellor.- The Vice- Chancellor shall appoint  not more 

than three pro-vice Chancellors with the written approval of the Chancellor in such 

manner as prescribed by the statues and they shall exercise such powers and 

perform such duties as may be laid down by the Statutes. 

18. Deans of faculties.- Deans of faculties shall be appointed by the  Vice-

Chancellor with the written approval of the Chancellor in such manner and they 

shall exercise such powers and  perform such duties as  may be laid down by the 

Statutes. 

19. Appointments in the University.- All appointments in sections 15, 16, 

17 and 18  in the University shall be as per Regulations of existing University 

Grants Commission and other Regulatory Authorities.  

20. The Registrar.- (1) The Registrar shall be appointed by the Chancellor 

in such manner and on such terms and conditions as may be laid down by the 

Statutes.  



 

20 
 

   (2) All contracts as defined in statutes shall be entered into, and signed by 

the Registrar on behalf of the University. 

   (3) The Registrar shall have the power to authenticate records on behalf of 

the University and shall exercise such other powers and perform such other duties 

as may conferred by the statutes or may be required from time to time, by the 

Chancellor or the Vice-Chancellor. 

  (4) The Registrar shall be responsible for the due custody of the records and 

the common seal of the University and shall be bound to place before the 

Chancellor, the Vice-Chancellor or any other authority all such information and 

documents as demanded.  

  21. The Finance Officer.- The Finance Officer shall be appointed by the 

Vice-Chancellor with the written approval of the Chancellor in such manner and he 

shall exercise such powers and perform such duties as may be laid down by the 

Statutes.  

22. Other Officers.- The manner of appointment, terms and conditions of 

service and powers and duties of the other officers of the University shall be such 

as may, be specified by Statutes.  

CHAPTER – IV 

AUTHORITIES OF THE UNIVERSITY 

23. Authorities of the University.- The following, shall be the authorities of 

the University, namely:- 

(i) The Board of Governors;  

(ii) The Board of Managements; 

(iii) The Academic Council; 

(iv) The Research and Innovation Council;  

(v) The Finance Committee; and  

(vi) Such other authorities as may be declared by the Statutes to be the 

authorities of the University. 

24. The Board of Governors and its powers.- (1) The Board of Governors 

shall consist of the following, namely:-  

(i)  The Chancellor  - Chairperson; 

(ii)  The Pro-Chancellor - Member; 

(iii)  The Vice-Chancellor - Member; 

(iv)  The Secretary to the Government in the Higher Education 



 

21 
 

Department or by their nominee not below the rank of Deputy 

Secretary - Ex-Officio Member; 

(v)  One expert from the field of management, finance or any other 

specialized, including administration to be nominated by the 

Government- Member;  

(vi)  Three persons nominated by the Sponsoring Body of whom one 

shall be woman- Member; and  

(vii)  The Pro Vice-Chancellor who shall be a non-voting member. 

      (2) The Registrar shall be non-voting member Secretary of Board of 

Governors.  

        (3) The tenure of office of the members of the Board of Governors, 

appointment of members, other than Government nominees, renewal and removal, 

etc:, shall be such as may be laid down by the Statutes. 

       (4) All meetings of the Board of Governors shall always be chaired by the 

Chancellor and in his absence by any one of the nominees of the Chancellor. If 

Chancellor has not nominated any person to Chair such a meeting, members 

present in the meeting shall elect the Chairperson for that meeting only from 

among themselves by a simple majority. 

       (5) Quorum for all meetings of the Board of Governors shall be three 

members attending and voting at such meeting: 

Provided that, the presence of either the Chancellor or one nominee of the 

Sponsoring Body and in the absence of the Chancellor or one nominee of 

Sponsoring Body, the Vice Chancellor, shall always be necessary to form the 

quorum for any meeting of the Board of Governors.  

(6) The Board of Governors shall be the Principal Governing Body of the 

University and shall have the following powers, namely:- 

(i) to appoint the Statutory Auditors of the University;  

(ii) to lay down policies to be pursued by the University; 

(iii) to review decisions of the other authorities of the University if  they 

are not in conformity with the provisions of this Act, or  the 

Statutes or the Rules;  

(iv) to take decision about voluntary winding up of the University with 

approval of Government;  

(v) to approve proposals for submission to the Government; and 



 

22 
 

(vi) to take such decisions and steps as are found desirable for 

effectively carrying out the objects of the University.  

 

  (7) The Board of Governor shall, meet at least four times a year. 

(8) The Board of Governors shall meet at such time and place as may be 

specified by Statute.  

(9) The agenda and proceedings of the Board of Governors shall be put up on 

the website of the University as a part of Mandatory Disclosures, in addition to the 

proceedings of the meeting shall be live stream.  

25. The Board of Management.- (1) The Board of Management shall consist of 

the following, namely:- 

(i) The Vice Chancellor;  

(ii) The Pro-Vice Chancellors; 

(iii) The Registrar;  

(iv) Two nominees of the Sponsoring Body; and  

(v) Two Deans of the faculties as nominated by the Vice Chancellor. 

(2) The Vice Chancellor shall be the Chairperson of the Board of Management 

and the Registrar shall be the Secretary of the Board of Management. 

(3) The Board of management shall be the executive body of the University. The 

powers and functions of the Board of Management shall be such as may be 

specified by the statutes. 

(4) All meetings of the Boards of Management shall always be chaired by the 

Vice Chancellor and in the absence of the Vice Chancellor, by the nominee of the 

Sponsoring Body and where the Sponsoring Body has not nominated any 

nominees, then by any other member as elected by the members present in the 

meeting; 

(5) In the event of a conflict of opinion at the meeting of the Board of 

Management, the issue shall be referred to the Chancellor and the decision of the 

Chancellor in respect of such issue shall be final and binding on the University.  

(6) The agenda and proceedings of the Board of management shall be put up 

on the website of the University as a part of Mandatory Disclosures.  

 

26. The Academic Council. - (1) The Academic Council shall consist of the 

following, namely: - 

(i) The Vice-Chancellor   -  Chairperson 



 

23 
 

(ii) The Pro Vice Chancellor            -  Member 

(iii) The Registrar    -  Secretary 

(iv)  Such other members not more than thirty members as may be 

specified by the Statutes. 

(2) The Academic Council shall be the principal academic body of the 

University and shall, subject to the provisions of this Act, the Statutes, Regulations 

and the Rules, and as per Regulations of existing University Grants Commission, 

relevant Rules and Regulations of Government of India and Government of 

Karnataka to co-ordinate and exercise general supervision over the academic 

policies of the University. The agenda and proceedings of the Academic Council 

shall be put up on the website of the University as a part of Mandatory Disclosures. 

27. The Research and Innovation Council.- (1) Research and Innovation 

Council shall be the Principal Research and Innovation Committee of the University 

and shall provide the larger holistic vision of the kind of research to be undertaken 

by the University, including prioritization of the research areas. Research and 

Innovation Council shall, subject to the provisions of this Act, the Statutes, 

Regulations and the Rules, co-ordinate and exercise general, supervision over the 

Innovation and Research policies of the University.  

(2) The Research and Innovation Council shall consist of the following, 

namely:-  

(i) The Vice- Chancellor      _  Chairperson 

(ii) The Pro Vice-Chancellor              –  Member 

(iii) The Dean of Research     –  Secretary 

(iv) Head of the Department of Innovation            –  Member 

(v) Deans of all Faculties     _ Members 

(vi) Such other members not more than thirty members as may be 

specified in the Statutes. 

      28. The Finance Committee.- (1) The Finance Committee shall consist of the 

following, namely:- 

(i) The Chancellor or his Nominee  -   Chairperson 

(ii) The Pro-Chancellor    - Member 

(iii) The Vice-chancellor    - Member  

(iv) The Registrar     -  Member 

(v) The Finance Officer    -  Secretary 

(vi) One nominee of the Sponsoring Body    -  Member  



 

24 
 

(vii) Such other members not more than thirty as may be specified in the 

Statutes. 

 (2) The Finance Committee shall be the principal financial body of the 

University to take care of financial matters and shall, subject to the provisions of 

this Act, Rules and Statutes and as per Regulations of existing University Grants 

Commission, relevant Rules and Regulations of Government of India and 

Government of Karnataka to co-ordinate and exercise general supervision over the 

financial matters of the University. The agenda and proceedings of the Finance 

Committee shall be put up on the website of the University as a part of Mandatory 

Disclosures. 

29. Other Authorities.- The constitution, powers and functions of the other 

authorities of the University shall be such as may be specified by the statutes.  

30. Disqualification for membership of an Authority or Body.- A person 

shall be disqualified for being a member of any of the authorities of bodies of the 

University, if he,- 

(a) is of unsound mind and stands so declared by a competent court;  

(b) is an undischarged insolvent;  

(c) has been convicted of any offence involving moral turpitude; 

(d) conducting or engaging himself in  private coaching classes;  

(e) has been punished for indulging in or promoting unfair practice in the 

conduct of any examination, in any form, anywhere; and 

(f) as and when the Board of Governors were to form an opinion in writing 

that a Member of any of the authorities or bodies is unfit to hold the post. 

31. Proceedings not invalidated on account of vacancy.- No act or 

proceedings of any authority of the University shall be invalid merely by reason of 

the existence of any vacancy or defect in the constitution of the authority.  

  32. Provisions pertaining to Agenda matters.-  (1) No Agenda Matter shall 

be either included in the Agenda for or taken up for discussion and decided in, the 

meeting of the Board of Governors or the Board of Management or any Committees 

without obtaining the Prior written approval of the Chancellor.  

(2) In the event of breach of any provisions of this Act the Chancellor shall be 

entitled at all time to immediately take remedial action by reversing all decisions 

taken by any functionary or body of the University in breach of the provisions of 

the Act and consequent upon the pursuit of such a remedial action all such actions 

taken by the functionary or body of the University in breach of the provisions of the 



 

25 
 

Act shall be deemed to be null and void, ab-initio and consequently the status quo 

ante shall prevail in respect of the matter or decision in breach.  

 

CHAPTER-V 

STATUTES AND REGULATIONS 

33. Statutes.- Subject to the provisions of this Act and Rules and 

Regulations of the UGC and other Regulatory Authorities, the Statues may provide 

for any matter relating to the Universities and Staff as given below namely:- 

(i)  the procedure for transaction of business of the Authorities of 

the University and the  composition of bodies not specified  in 

this Act;`  

(ii)  Subject to section 52, the operation of the permanent statutory 

endowment fund, University endowment fund, the general fund 

and the development fund; 

(iii)  the terms and conditions of appointment of the Vice-Chancellor, 

the Registrar and the Finance Officer and their powers and 

functions;  

(iv)  the mode of recruitment and the terms and conditions of service 

of the other officers, Teachers and employees of the University; 

(v)  the procedure for resolving disputes between the University and 

its officers, Faculty members, employees and students; 

(vi)  creation, abolition or restructuring of departments and faculties; 

(vii)  the manner of co-operation with other Universities or 

institutions of higher learning;  

(viii)  the procedure for conferment of honorary degrees; 

(ix)  provisions regarding grant of free ships and scholarships; 

(x)  policies in respect of seats in different courses of studies and 

the procedure of admission of students to such courses;  

(xi)  policy relating to the fees chargeable from students for  various 

courses of studies as per the provisions of this Act;  

(xii)  institution of fellowships, scholarships, studentships, free ships, 

medals and prizes;  



 

26 
 

(xiii)  procedure for creation and abolition of posts; and   

(xiv)  any other matters which may be decided by the Board of 

Governors or required to be provided by statutes under this Act.  

 

34. Statutes how made.-  (1) The first statutes framed by the Board of 

Management shall be submitted to the Board of Governors for its approval. 

(2) The Board of Governors shall consider the First Statutes, submitted by 

the Board of Management and shall give its approval thereon with such 

modifications, if any, as it may deem necessary.  

(3) The University shall publish the First Statutes, as approved by the Board 

of Governors in the University Notification, and thereafter, the First Statutes shall 

come into force from the date of its publication.  

35. Power to amend the Statutes.- The Board of Governors may, make new 

or additional Statutes or amend or repeal the Statutes.  

36. Regulations.- (1) Subject to the provisions of this Act and Rules and 

Regulations of University Grants Commissions and other Regulatory Authorities, 

the statutes may provide for all or any of the following matters, namely:-  

(i) admission of students to the University  and their enrolment and 

continuance as such;  

(ii) the courses of study to be laid down for all degrees and other 

academic distinctions of the University; 

(iii)   the award of degrees and other academic distinctions: 

(iv) the conditions of the award of fellowships, scholarships,  

      studentships, medals and  prizes;   

(v) the conduct of examinations and the conditions and mode of     

appointment and duties of examining bodies, examiners invigilators, 

tabulators and moderators;  

(vi) the fees to be charged for admission to the examinations, degrees and 

other academic distinctions of the University;  

(vii) the conditions of residence of the students at the University or a 

Constituent College;  

(viii)  maintenance of discipline among the students of the University or                  

a Constituent College; and 

(ix)  all other matters as may be provided in the Statutes under the Act.  



 

27 
 

37. Academic Regulations how made.- The Academic Regulations shall be 

made by the Academic Council and approved by Board of Management. 

38. Power to amend Regulations.- The Academic Council may, with the 

approval  of the Board of Management, make new or additional academic 

regulations or amend or repeal the regulations.  

39. Fixation of fee.- (1) The fee in respect of forty percent of the admissions 

in all courses of the university for which admissions are made through a Common 

Entrance Test conducted by the Government or Central Government its agency 

under the proviso to section 9 shall be the fees, as fixed by the Government, for 

Government seats from time to time, in accordance with the consensual agreement 

entered into by the Government and the University in accordance with the 

Karnataka Professional Educational Institutions (Regulation of Admission and 

Determination of Fee) Act, 2006 (Karnataka Act 8 of 2006). The fee in respect of 

forty percent of the admission in all other non-technical courses being offered in 

the university shall be the fees as fixed by consensual agreement entered between 

University and State Government. 

(2) In respect of other seats of the University, the fee shall be determined by 

the fee regulatory committee constituted under the chairpersonship of a Retired 

Judge of  High Court in accordance with the provisions of section 6 of the 

Karnataka Professional Educational Institutions (Regulation of Admission and 

Determination of Fee) Act, 2006 (Karnataka Act 8 of 2006). For the purpose of this 

section, the University shall be deemed to be the Private Unaided Professional 

Educational Institution.  

 (3) The Committee shall look into the compliance of the university in the 

admissions vis-à-vis the statutory and regulatory authorities and collection of fees. 

CHAPTER - VI 

MISCELLANEOUS 

40. Publication of Mandatory Disclosures in the University website.- The 

University shall publish in its official website, the Act, Regulations, Public Notices 

and other instructions of concerned National Accreditation Body and the Acts, 

Rules, Regulations, Orders, Circulars and instructions of the Government. And also 

the proceedings of every meeting of the Board of Governors, Board of Management, 

the Academic Council, The Finance Committee within 48 hours of the signature on 

the proceedings of the said meeting by the Competent Authority. The details of the 

Programmes/Courses offered by the University, its sanctioned intake, eligibility for 



 

28 
 

enrolment, fee structure, details of permanent, adjunct and temporary Faculty 

Programme wise, Department wise shall also mandatorily be published and 

updated on the website of the University. The Annual Report of the university and 

the Annual Accounts shall also be published mandatorily on the website of the 

university. The Information sent by the University to the University Grants 

Commission for inspection purpose, the information sent by the university to the 

University Grants Commission for ascertaining their norms and standards and 

compliance report submitted by university to UGC shall also be mandatorily 

published on its website. 

41. Conditions of service of employees.- (1) Every employee shall be 

appointed under a written contract subject to such terms and conditions as may be 

specified by statutes and regulations or prescribed if any by rules which shall be 

kept in the University and a copy of which shall be furnished to the employee 

concerned. 

(2) Disciplinary action against the employees shall be governed by the 

procedure specified in the Statutes. 

(3) Any dispute arising out of the contract between the University and an 

employee shall, be resolved in the manner provided for in the written contract and 

in accordance with the Statues and as per existing Regulations of the University 

Grants Commission. 

42. Right to appeal.- In case of disciplinary actions by the University 

against its employee or student, the aggrieved employee or students shall have a 

right to appeal to such authority  as  specified by the statutes and as per existing  

University Grants Commission, relevant Government of India and Government of 

Karnataka Rules and Regulations. 

43. Provident or Pension Fund.- The University shall constitute for the 

benefit of its employees such Provident or Pension Fund and provide such 

insurance scheme as it may deem fit in such manner and subject to such 

conditions as may be specified by the statutes and the laws in force. 

44. Disputes as to constitution of University authorities and bodies.- If 

any question arises as to whether any person has been duly elected or appointed 

as, or is entitled to be a member of any authority or other body of the University, 

the matter shall be referred to the Chancellor. 

45. Constitution of Committees.- Any other authority of the University 

mentioned in section 29, shall be empowered to constitute a committee of such 



 

29 
 

authority, consisting of such members of such authority and having such powers 

as the authority may deem fit.  

46. Filling of casual vacancies.- Any casual vacancy among the members, 

other than ex-officio members of any Authority or body of the University shall be 

filled in the same manner in which the member whose vacancy is to be filled up, 

was chosen, and the person filling the vacancy shall be a member of such authority 

or body for the residual term for which the person in whose place he would have 

been a member. 

47. Transitional provisions.- Notwithstanding anything contained in any 

other provisions of this Act and the Statues,  

(i) the first Vice-Chancellor and Pro Vice-Chancellor, if any shall be  

appointed by the Chancellor;  

(ii) the first Registrar and the first Finance Officer shall be appointed  by 

the Chancellor; and 

(iii) the first Board of Management, the first Finance Committee, the first 

Innovation and Research Council and the first Academic Council 

shall be constituted by the Chancellor. 

48. Permanent Statutory Endowment Fund.- (1) The University shall 

establish a Permanent Statutory Endowment Fund of at least rupees twenty five 

crores jointly in the name of the Chancellor of the University and Secretary of the 

Government Higher Education Department, out of which at least rupees fifteen 

crores shall be in cash and remaining in the form of Bank Guarantee, which may 

be increased suo moto but shall not be decreased: 

 (2) The University shall have power to invest the permanent Statutory 

Endowment Fund in such manner as may be prescribed. 

(3) The University may transfer any amount from the General Fund or the 

Development Fund to the permanent Statutory Endowment Fund. Excepting in the 

event of dissolution of the University, in no other circumstances can any monies‟ be 

transferred from permanent Statutory Endowment Fund for other purposes. 

(4) Seventy five percent of the incomes received from permanent Statutory 

Endowment Fund shall be used for the purpose of development or general work of 

the University. The remaining twenty five percent shall be reinvested in the 

permanent Statutory Endowment Fund. 



 

30 
 

49. University Endowment Fund.- (1) The University shall establish a 

Endowment Fund having such funds as may be determined by the Sponsoring 

Body which can include donations and other funds received from time to time.   

(2) The University shall have the power to invest the University Endowment 

Fund in a manner as may be specified by the Statutes.  

(3) The University Endowment Fund is a self-imposed fund that the University 

desires to maintain voluntarily and invest it responsibly to protect itself from 

financial challenges that may arise on account of pursuing social objectives and/or 

unforeseen circumstance. 

(4) The University may transfer any amount from the General Fund or the 

development fund to the University Endowment Fund. Excepting in the event of 

dissolution of the University, in no other circumstances can any monies be 

transferred from the University Endowment Fund for other purposes.  

(5) Eighty percent of the incomes received from the University Endowment 

Fund shall be used for the purposes of development or general work of the 

University. The remaining twenty percent shall be reinvested into the University 

Endowment Fund. 

50. General Fund. - (1) The University shall establish a General Fund to which 

the following amount shall be credited, namely:- 

(i) all fees which may be charged by the University; 

(ii) all sums received from any other source not prohibited by any law 

for the time being  in force:  

(iii) all contributions made to the University; 

(iv) all contributions or donations made in this behalf. by any other 

person or body which are not prohibited by any law for the time 

being in force. 

(2) The funds credited to the General Fund shall be applied to meet all the 

recurring expenditure of the University.  

51. Development fund.- (1) The University shall establish a Development 

Fund to which the following funds shall be credited, namely:- 

(i) all sums received from any other source for the purposes of the 

development of the University; 

(ii) all contributions made by the University; 



 

31 
 

(iii) all contributions or donations made in this behalf by any other 

person or body; which are not prohibited by any law for the time 

being in force; and 

(iv) all incomes received from the Permanent Statutory Endowment 

Fund.  

(2) The funds credited to the Development Fund from time to time shall be 

utilized for the development of the University. 

52. Maintenance of funds.- The funds established under sections  48, 49, 

50 and 51 shall subject to general supervision and control of the Board of 

Governors, be regulated and maintained in such manner as may be prescribed. 

53. Annual Report.- (1) The Annual Report of the University shall be 

prepared under the direction of the Board of Management and shall be submitted 

to the Board of Governors for its approval.  

(2) The Board of Governors shall consider the annual report in its meeting 

and may approve the same with or without modification. 

(3) A copy of the annual report duly approved by the Board of Governors 

shall be sent to the Visitor and the Government before 31st December following 

close of the financial year in March of each year. A copy of the Annual Report shall 

be published on the website of the University not later than 31st December of every 

year.  

54. Accounts and audit.- (1) The annual accounts and balance sheet of the 

University shall be prepared under the direction of the Board of Management and 

all funds accruing to or received by the University from all source and all amount 

disbursed or Paid shall be entered in the account maintained by the University.  

(2) The annual accounts of the University shall be audited by an auditor, 

who is a member of the Institute of Charted Accountants of India, every year. 

(3) A copy of the annual accounts and the balance sheet together with the 

audit report shall be submitted to the Board of Governors before 30th November 

following close of the financial year in 31st March of each year.  

(4) The annual accounts, the balance sheet and the audit report shall be 

considered by the Board of Governors at its meeting and the Board of Governors 

shall forward the same to the visitor and the Government along with its observation 

thereon on or before 31st December of each year. 



 

32 
 

 (5) In the event of any material alteration in the Report of the Auditors, the 

Government may issue directions to the University, to rectify the alterations and 

such directions shall be binding on the University. 

 (6) A copy of the annual accounts and audit report shall be published on the 

website of the University every year. 

55. Mode of proof of University record.- A copy of any receipt, application, 

notice, order, proceeding or resolution of any authority or committee of the 

University or other documents in possession of the University or any entry in any 

register duly maintained by the University, if certified by the Registrar, shall be 

received as prima facie evidence of such receipt, application, notice, order, 

proceeding, resolution or document or the existence of entry in the register and 

shall be admitted as evidence of the matters and transaction therein recorded 

where the original thereof would, if produced, have been admissible in evidence. 

56. Power of Government to issue directions.- The Government may give 

such directions to the University as in its opinion are necessary or expedient for 

carrying out the purposes of this Act or to give effect to any of the provisions 

contained therein or of any rules or orders made there under and the Board of 

Governor or the Board of management, as the case may be, of the University shall 

comply with every such direction.  

57. Penalties.- (1) Whoever contravenes the provisions of this Act or the 

rules made thereunder or any examination matters or in matters relating to award 

of degrees or in giving marks cards shall on conviction be punishable with fine of 

not less than rupees fifty thousand which may extend to ten lakhs rupees  or with 

an imprisonment for a term of not less than six months which may extend to two 

years or with both: 

Provided that, where the University is also involved in committing the offence 

the permission letter granted under this Act to commence the University shall be 

withdrawn.  

(2) A penalty under this section may the imposed without prejudice to the 

penalty specified in any other Act. 

58. Power to enter and inspect.- Any officer not below the rank of Group 

„A‟ officer authorized by the Government in this behalf, shall, subject to such 

conditions as may be specified therein under the Karnataka Educational 

Institutions (Prohibition of Capitation Fee) Act, 1984 (Karnataka Act 37 of 1984) 

shall be deemed to be the Officer authorized to exercise the same powers and 



 

33 
 

discharge the-same functions as provided under section 9 of that Act for the 

purposes of this Act. 

59. Power to give direction for dissolution of the University.- (1) If the 

University proposes dissolution in accordance with the law governing its 

constitution or incorporation, it shall give at least six months prior notice in writing 

to the Government. 

(2) The Karnataka State the Higher Education Council shall conduct 

periodical Inspection of University regarding,- 

(i) standard of Instructions for grant of degree; 

(ii) quality of Education;  

(iii) avoidance of commercialization of Higher Education; and 

(iv) contravention of the provisions of the Act, if any;  

   - and send report  to the Government within ten days from the conduct of this 

inspection. The Inspection Report shall also be published on the website of the 

Karnataka State Higher Education Council. 

(3) On identification of mismanagement, maladministration and indiscipline, 

the Government shall issue directions to the management of the University to set 

right the administration.  If the direction is not followed within such time as may be 

prescribed, the right to appoint an administrator or winding up of University or 

take decision on for winding up of the University or any course thereof shall vest 

with the Government. 

(4) The manner of winding up of the University or any course thereof shall be 

such as may be prescribed by the Government in this behalf: 

Provided that, no such action shall be initiated without affording a reasonable 

opportunity to show cause to the University.  

(5) On receipt of the notice referred to in sub-section (1) the Government 

shall, in consultation with the relevant Regulatory Authority make such 

arrangements for administration of the University from the proposed date of 

dissolution of the University or winding up of the course and until the last batch of 

students in regular courses of studies of the University complete their courses of 

studies in such manner as may be prescribed.  

60. Expenditure of the University during dissolution.- (1) The 

expenditure of administration of the University during taking over period of its 

management under sub-section (5) of section 61 shall be met out of the Permanent 



 

34 
 

Statutory Endowment Fund, the General Fund or the Development Fund in such 

manner as may be prescribed.  

(2) If the fund referred to in sections 48, 49, 50 and 51 are not sufficient to 

meet the expenditure of the University during the taking over period of its 

management, such expenditure may be met by disposing of the properties or assets 

of the University, by the Government. 

(3) Where the dissolution of the University is due to mismanagement or 

maladministration, the Government is at liberty to identify the persons responsible 

for such mismanagement or maladministration and to impose penalty as it deems 

fit.  The right to appoint an Administrator or winding up of the University or taking 

any other course of action thereof shall vest with the Government. 

61.  Temporary taking over of management of the University in public 

interest.- (1) Notwithstanding anything contained in any Law for the time being in 

force in the State where based on inspection report of Higher Education Council it 

is found that any private university is violating the,- 

(a) standard of instructions for grant of degree; 

(b) quality of education; 

(c) avoidance of commercialization of Higher Education; or 

(d) the provisions of the Act in which it is established. 

 the Government is of opinion that, in spite of the directions by the Government, 

the university has not complied with  it and has continued to mismanage, mal-

administer and  to practice indiscipline, then before directing for winding up of the 

management of the University, shall either in the public interest or in order to 

secure the proper management of the University be taken over, it may, after giving 

one month's notice to the Chancellor or Sponsoring Body in charge of the 

management of the University to make any representation, direct by notification, 

that the management of the University shall with effect on and from the date 

specified therein shall vest in the Government for a period of one year:  

 Provided that, if the Government is of the opinion that in order to secure the 

proper management of the University, it is expedient that such management shall 

continue to vest in the Government after the expiry of the said period of one year, it 

may issue direction for the continuance of management for a further period not 

exceeding one year as it may think fit, so however, the total period for which 

management shall continue to vest in the Government shall not, in any case, 

exceed two years. 



 

35 
 

  (2) The University referred to in sub-section (1), shall be deemed to include 

all assets, rights and lease holds, powers, authorities and privileges and all 

property, movable and immovable, including lands, buildings, stores instruments 

and vehicles, cash balances, revenue fund, investments and book debts and all 

other rights and interests arising out of such property as were immediately before 

the date of taking over of the management under sub-section (1) in the ownership, 

possession, power or control of the management of the University and all books of 

account, registers and all other documents of whatever nature relating thereto.  

 (3) All persons, in whom the management of the University vested 

immediately before the taking over shall, as from the date aforesaid, cease to be so 

vested and shall be deemed to have vacated their offices as such on the date 

aforesaid.  

 (4) Notwithstanding anything in any other law for the time being in force, no 

person who ceases to hold any office by reason of the provisions contained in sub-

section (3) shall be entitled to claim any compensation for the premature 

termination of the contract of management or other arrangement or for the 

cessation of management or for the loss of office, as the case may be.  

 (5) Notwithstanding any judgment, decree or order of any court, tribunal or 

other authority or anything contained in any other law for the time being in force, 

every person in whose possession or custody or under whose control the University 

or any part thereof or any properties attached thereto vest shall transfer the same 

to the Administrative officer appointed by the Government for the purpose of 

carrying on the management of the University for and on behalf of the Government, 

or where no Administrative officer is appointed, to such other person as the 

Government may direct.  

 (6) For the removal of any doubt, it is hereby declared that any liability 

incurred by the management in relation to the Private University before the taking 

over shall be enforceable against the said Governing Council or sponsoring body 

and not against Government or the Administrative Officer. 

(7) The amount payable in respect of the vesting in the Government, the 

University under sub-section (1) shall be an amount equal to the average net 

annual surplus income of the University during the period of its existence or the 

period of five consecutive accounting years immediately preceding the date of such 

vesting whichever is less:  



 

36 
 

 Provided that, no such amount shall be payable if the sponsoring body or 

Governing Council under which the University is found makes provision for the 

running of the University. 

 (8) The amount payable under sub-section (7) shall subject to rules made 

under this Act, be paid by the Government to the person interested in the 

University in such manner and within such time as may be prescribed.  

 

62. Relinquishment of management of the University.- (1) After the 

expiry of the period specified in sub-section (1) of section 61, the management of 

the University shall vest in accordance with the order, if any, of any court and if 

there be no such order, vest in the Governing Council or managing committee or 

sponsoring body (by whatever name called) of the University or such other body or 

person, as the case may be, entitled thereto. 

(2) If at any time before the expiry of the period referred to in sub-section (1) 

of section 61, it appears to the Government that the purpose of vesting of the 

management of the University in the Government has been fulfilled or that for any 

other reason it is not necessary that the management of the University shall remain 

vested in the Government, it may, by order published in the official Gazette, 

relinquish the management of the University with effect from such date as may be 

specified in the order.  

(3) On and from the date specified under sub- section (1) the management of 

the University shall be transferred in accordance with the order, if any, of any 

court, and if there be no such order, shall be transferred to the Governing Council 

or managing committee or sponsoring body (by whatever name called) of the 

University or such other body or person, as the case may be, entitled thereto. 

 

63. Penalty for obstructing officer or other person exercising powers 

under this Act.- Any person who obstructs an officer of the  Government in the 

exercise of any power conferred on him or in the performance of any function 

entrusted to him by or under this Act or any other person lawfully assisting such 

officer in the exercise of such power or in the performance of such function or who 

fails to comply with any lawful direction made by such officer or person shall be 

punished with fine which may extend to one lakh rupees.  

 



 

37 
 

64. Punishment for abetment of offences.- Whoever instigates or abets the 

commission of any offence punishable under this Act shall, on conviction, be 

punished with the punishment provided for the offence. 

 

 65. Offences by companies.- (1) Where an offence against any of the 

provisions of this Act or any rule made there under has been committed by a 

company, every person who at the time of the offence was committed, was in 

charge of and was responsible to the company for the conduct of business of the 

company, as well as the company, shall be deemed to be guilty of the offence and 

shall be liable to be proceeded against and punished accordingly:  

Provided that, nothing contained in this sub-section shall render any such 

person liable to any punishment if he proves that the offence was committed 

without his knowledge or that he has exercised all due diligence to prevent the 

commission of the such offence.  

(2) Notwithstanding anything contained in sub-section (1), where any such 

offence has been committed by a company and it is proved that the offence has 

been committed with the consent or connivance of or is attributable to any neglect 

on the part of any director, manager, secretary or other officer of the company, 

such director, manager, secretary or other officer shall be deemed to be guilty of 

that offence and shall be liable to be proceeded against and punished accordingly.  

Explanation.- For the purposes of this section:-  

 (a) “company, trust, firm, society” means respectively a company defined 

under the Companies Act, 1956 (Act No.1 of 1956), trust defined under the Indian 

Trust Act, 1882 (Act No.2 of 1882), firm defined in the Indian Partnership Act, 1932 

(Act No.9 of 1932), Society defined in the Karnataka Societies Registration Act, 

1960 (Karnataka Act 17 of 1960) or other association of individuals; and  

(b) “director‟‟ in relation to:-  

(i) a company means the director as defined in sub-section (13) of section 2 

of the Companies Act, 1956 and partner means a partner in the firm;  

(ii) a society, a trust or other association of individuals, means the person 

who is entrusted under the relevant provisions of the Act or rules of the 

society, trust or other association with management of the affairs of the 

society, trust or other association, as the case may be. 
 

66. Removal of difficulties.-  (1) If any difficulty arises in  giving effect to 

the provisions of this Act, the Government may, by a notification or by order, make 



 

38 
 

such provisions, which are not inconsistent with the provisions of this Act, as 

appear to it to be necessary or expedient, for removing the difficulty:  

Provided that, no notification or order under this section shall be made after 

the expiry of a period of five years from the date of commencement of this Act. 

(2) Every Order made under sub- section (1), shall, as soon as may be after it is 

made, be laid before the State Legislature. 
 

67. Power to make rules by the Government.- (1) The Government may 

make rules by notification, to carry out the purposes of this Act. 

(2) Every rule made under this Act  shall be laid as soon, as may be after it is 

made before each House of the State Legislature while it is in session for a total 

period of thirty days which may be comprised in one session or in two or more 

successive sessions, and if, before the expiry  of the session immediately following 

the session or the successive sessions aforesaid, both Houses agree in making any 

modification in the rule or both  Houses  agree that the rule should not be made, 

the rule shall thereafter have effect only in such modified form or be of no effect, as 

the case may be, so however,  that any such modification or annulment shall be 

without  prejudice to the validity of anything previously done under that rule. 

 

 The above translation of                    , 2022 (2023ರ 

               :21) be published in the official Gazette under clause (3) 

of Article 348 of the constitution of India.  

THAAWARCHAND GEHLOT 

GOVERNOR OF KARANATAKA 
 

 

By Order and in the name of 

the Governor of Karnataka, 
 

 

  

G.SRIDHAR 

Secretary to Government 

Department of Parliamentary 

Affairs and Legislation