(1) No management of a college or recognized institution shall be allowed to close down the college or recognized institution without prior permission of the State Government.
(2) The management desirous of closing down the college or recognized institution shall apply to the University on or before the first day of August of the preceding year, stating fully the grounds for closure, and pointing out the assets in the form of buildings and equipments, their original cost, the prevailing market value and the grants so far received by it either from the University Grants Commission, the State Government or from public funding agencies.
(3) On receipt of such an application, the Academic Council shall cause to make inquiries as it may deem fit, to assess and determine whether the college or recognized institution be permitted to effect the closure. The Academic Council may, examine whether the closure should be avoided by providing necessary assistance or taking over of the college or recognized institution by the University or transferring it to another management.
(4) If the Academic Council decides to recommend the closure, it shall prepare and submit to the Executive Council, a report on the extent of damages or compensation to be recovered from the management and whether the assets created utilizing the funds provided by the University Grants Commission, the State Government or other public funding agencies, be transferred to the University or other management, and the payment of compensation to the teachers and the staff retrenched.
(5) The Academic Council shall, with prior concurrence of the Executive Council and approval of the State Government then decide whether the affiliated college or recognized institution be permitted the closure.
(6) The University may take over a college or a recognized institution or transfer the same to another Management with prior approval of the State Government and after following the procedure prescribed in that behalf.
(7) The procedure to effect the closure shall be in phases, so as to ensure that the students already admitted to the college or recognized institution are not affected, and that the first year shall be closed first and no new admissions shall be effected. The procedure to phase out the closure shall be such as may be prescribed.
(8) The procedure for closure of colleges, or recognized institutions, referred to in sub-section (1) to (7) shall mutatis-mutandis apply for closure of faculties or subjects.