(1) The Government may at any time, by notification, in the Official Gazette, transfer any Government college or hospital of health sciences to the University and from the date of such transfer, the said college or hospital, as the case may be, shall be a University College and hospital.
(2) When any Government college or hospital is transferred to the University under sub-section (1), the following consequences shall ensue, namely,
(a) all the assets including the properties and liabilities pertaining to the said college or hospital, as the case may be, stand transferred to and vest in the University; and
(b) all the teaching and non-teaching employees of the department of the Medical Education and Research serving in the transferred college or hospital, who are either permanent or on probation, shall be taken by the University into its service, if found suitable by the University:
Provided that no person shall be taken by the University into its service, unless such employee gives his option in writing:
Provided further that the employees surplus to the requirement of the University or found ineligible for service of the University or not consenting for transfer to the University, and holding liens against the permanent posts, shall be absorbed by the Government elsewhere.