(1) If the State Government is of opinion that-
(a) an institution to which directions have been issued in pursuance of section 4 has failed to comply with such directions within the period specified in the directions, or
(b) an educational institution in respect of which an investigation has been made under section 3 (and any directions have been issued in pursuance of section 4) is managing the affairs of its undertaking in a manner detrimental to such institution or to public interest, the State Government may, by notification in the Official Gazette, direct that the entire management and control of the undertaking of the institution specified in the notification (hereinafter referred to as the 'said Institution') vested in such institution immediately before the date of such notification (hereinafter referred to as the appointed date) shall be transferred to and vested in a Society formed for the purpose under the Societies Registration Act, 1860 (XXI of 1860) (hereinafter referred to as "the Society") with a view to maintaining continuity of education imparted in the said Institution.
(2) The Society shall among other members consist of such officers of the Education Department as may be nominated by the State Government and if the said Institution is an institution to which the provisions of clause (1) of article 30 of the Constitution of India apply, the Society shall consist of persons the majority of whom (including officers of Government) belong to the minority by which the said Institution has been administered immediately before the appointed date.
(3) The State Government shall cause the substance of such notification to be published at such places and in such manner as may be prescribed.