Section 5(6) in The Rules for Payment Of Grant-in-Aid to Non-Government Educational, Cultural & Physical Education Institutions, 1963
(6)Fines.With regard to other fees referred to in (a) and (b) above subject fees games and crafts shall be utilised for the specified purpose for which they are charged and in the event of their non- utilisation in full or part, the amount is transferred to the Student Fund to be utilised in the next year. The Governing body/Council or the Management shall in no case utilise any portion of the students fund for the purpose of running the institution or in payment of salaries of the staff, rent of the buildings etc.Note (3). - During each year every institution admitted to the grant-in-aid list shall provisionally be paid a monthly sum equal to 1/12th or a quarterly sum equal to l/4th of the annual grant fixed for the previous year till the current year's grant is sanctioned subject to its final adjustment.The following will be the basis for the Categorisation of the institutions:-
