Section 2(iv) in Grant-in-Aid Code of the Tamil Nadu Educational Department
(iv)In cases where the managements of aided educational institutions (other than primary schools) do not pay dearness allowance at Government rates to the staff under their control, the Director shall carry out investigation into the financial position of the institutions and if, after such investigation, he is satisfied that the managements can afford to pay the allowance at Government rates shall direct the managements concerned to pay the allowance at Government rates. If even after the issue of such a direction, the managements receiving grants from State funds do not pay the allowance at Government rates, the grant payable to them may be withheld either in full or in part. The refusal of the payment of the allowance at Government rates by managements which do not earn any teaching/staff grants may be considered as valid reason for the withdrawal of recognition.
