Amendment status not verified — confirm the current text below against the official source.
( 1 ) No management of an institute shall be allowed to close down the institute without prior permission of the Government and other regulatory authority which has given approval to start the institute. ( 2 ) The management desirous of closing down the institute shall apply to the Board as per the schedule declared by the Board or appropriate regulatory authority, as the case may be, stating fully the grounds for closure, and pointing out the assets in the form of building and equipment, their original costs, the prevailing market value and the grants so far received by it from the Government or from public funding agencies: Provided that, the management of unaided institute shall also give an undertaking on affidavit that the liabilities including emoluments payable to teaching and non-teaching staff, arising out of closure of institute or course shall be solely that of the management of such institute. ( 3 ) On receipt of such an application, the Board shall cause to make enquiries as it may deem fit, to assess and determine whether the institute be permitted to effect the closure: Provided that, no application for closure shall be rejected by the Board unless an opportunity of being heard is given to the management. ( 4 ) If the Board decides to recommend the closure, it shall prepare and submit to the Government or the regulatory authority, as the case may be, a report on the extent of the assets created utilizing the funds provided by the Government or other public funding agencies, be transferred to the Government or other management, and the payment of compensation to the teachers and the staff retrenched. ( 5 ) If the Board has recommended the closure of the affiliated institute and the prior permission for closure has been granted by the regulatory authority which has given approval to start the institute, the Government may issue the order for closure. ( 6 ) The procedure to phase out the closure shall be such as may be prescribed by the Board. ( 7 ) The procedure to effect the closure shall be in phases, so as to ensure that the students already admitted to the institute are not affected, and that the first year shall be closed first and no new admissions shall be effected. ( 8 ) The procedure given in this section shall, mutatis-mutandis, be applicable to closure of the course or programme affiliated to the Board.