Section 4(2)(b) in The Karnataka Educational Institutions (Prohibition Of Capitation Fee) Act, 1984
(b)the number of seats that may be filled up by the management of such institution,-(i)from among Karnataka students on the basis of merit, on payment of such cash deposits refundable after such number of years, with or without interest as may be specified therein, but without the payment of capitation fee ; or(ii)at its discretion :