(1) The Managing Committee of a College shall, for the purpose of disbursement of salaries to its employees, open in a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) or a co-operative bank or a Government treasury or sub-treasury a separate “Salary Payment Account” to be operated by the Principal :
Provided that the State Government may, on receipt of a report from the Director of any irregularity in the operation of the “Salary Payment Account”, instruct the bank or treasury, as the case may be operated by a person authorised by the State Government.
(2) The State Government may, from time to time, require by general or special order that the Managing Committee shall deposit in the “Salary Payment Account” such portion of the amount received from students as fees and also such portion, if any, of the income received from any property, movable or immovable, belonging to or endowed wholly or partly for the benefit of the College, and by such date, as may be specified in that order, and thereupon the Managing Committee shall be bound to comply with such directions.
(3) Where the Director is of the opinion that the Managing Committee has failed to deposit the fees in accordance with the provisions of sub-section (2) or the orders issued thereunder, the Director may, by order prohibit the Managing Committee from realising any fee from the students and thereupon, the Director may realise the fees either through the employees of the College or in such other manner as he thinks fit, directly from the students and shall deposit the fees so recovered in the “Salary Payment Account”.
(4) The State Government shall also pay into the “Salary Payment Account” such amount as maintenance grant which, after taking into consideration the amount deposited under sub-sections (2) and (3), is necessary for making payment in accordance with sub-section (5).
(5) The salary of an employee shall be paid by transfer of the amount from the “Salary Payment Account” to his account, if any, in the bank, or if he has no account in that bank, then by cheque.