(1) Notwithstanding anything contained in this Chapter, the State Government may, after such enquiry as they may deem fit, withhold, reduce or withdraw any grant payable during the year to an educational institution having regard to the funds at the disposal of the State Government or the conduct and efficiency and the financial condition of such institution, after giving an opportunity to the Governing Council of the institution concerned of making a representation against such withholding, reduction or withdrawal.
(2) Without prejudice to the generality of the provisions of sub-section (1) or any other provision of this Act, the State Government may, after such 39 enquiry as they may deem fit, withhold, reduce or withdraw any grant payable to any educational institution if the Governing Council of the institution concerned,-
(i) fails to fulfil all or any of the conditions of grant;
(ii) denies admission to any citizen on grounds only of religion, race, caste, language or any of them;
(iii) allows any employee of the institution to take part in any agitation intended to bring or attempt to bring into hatred or contempt or intended to excite or attempt to excite disaffection towards the Government established by law in India;
(iv) directly or indirectly, encourages any propaganda or practice of wounding the religious feelings of any class of citizens of India or insulting the religion or the religious beliefs of that class; is guilty of falsification of registers or mis-use of funds for purposes other than those for which they are collected;
(v) fails to remedy within such reasonable time as specified by the competent authority the defects in the maintenance of accounts pointed out by the auditors; or
(vi) fails to restore, within the time specified by the competent authority, an employee whose services have been wrongfully dispensed with or fails to pay him any arrears of salary or other benefits when directed to do so by the competent authority.
(3) Subject to the other provisions of this Act every order passed under this section shall be final and shall not be questioned in any court of law.