Section 11 in The M.P. Niji Vishwavidyalaya (Sthapana Avam Sanchalan) Adhiniyam, 2007
11. Endowment Fund.
(1)On receipt of the letter of intent from the State Government as provided- under sub-section (2) of Section 6, a sponsoring body, willing to fulfill the conditions and give undertaking as mentioned in the letter of intent, shall establish an endowment fund of five crore rupees within fifteen days as a perpetual deposit in any bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), as a corresponding new bank.(2)The endowment fund shall be used as security deposit to ensure that the private university complies with the provisions of the Act, Statutes and Ordinances, and the State Government may forfeit, after giving notice, whole or part of endowment fund on the recommendation of the Regulatory Commission, in case of breach or contravention of any provision of this Act, Statute, Ordinance or regulation by the sponsoring body.(3)Income from the endowment fund may be utilized for development of infrastructure of the private university, but shall not be utilized for recurring expenditure of the private university.(4)The mode of establishment of endowment fund, the manner of its investment, the payment of income from it to the sponsoring body, its forfeiture and mode of its return to the sponsoring body shall be such as may be prescribed.
