Section 43. Permanent Endowment Fund

43. (1) The Sponsoring body shall establish a permanent Endowment Fund of at least Rs. 5 (five) crore. (2) The Endowment fund shall be used as security deposit to ensure that the University complies with the provisions of this Act and functions as per provisions of this Act, the Statutes, the Ordinances and the Regulations. The State Government shall have the powers to forfeit, a part or whole of the Endowment Fund, in case the University or the Sponsoring Body contravenes the provisions of this Act, the Statutes, the Ordinances or the Regulations made thereunder. (3) The University may utilize the income from Endowment Fund for the development of infrastructures of the University or for meeting the recurring expenditure of the University. (4) The amount of Endowment Fund shall be invested in such instruments as the State Government may prescribe by rules and shall be kept invested until the dissolution of the University. (5) In case of investment in long term security, and in case of deposit in the interest bearing Personal Deposit account in the Government Treasury, deposit shall be made with the condition that the amount shall not be withdrawn or utilized without the prior permission of the State Government.