(1) No management of a college or recognised institution or pathashala shall be allowed to close down the college or recongised institution or pathashala without prior permission of the State Government and the university.
(2) The management desirous of closing down the college or recognised institution or pathashala 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 equipment, 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 Vidvat-Parishad shall cause to make enquiries as it may deem fit, to assess and determine whether the college or recognised institution or pathshalas be permitted to effect the closure. The Vidvat-Parishad may examine whether the closure should be avoided by providing necessary assistance or taking over of the college, institution or pathashala by the university or transferring it to another management.
(4) If the Vidvat-Parishad decides to recommend the closure, it shall prepare and submit to the Vyavasthapana Parishad, a report on the extent of damages or compensation to be recovered from the management and whether the assets created utilising the funds provided by the University Grants Commission, the State Government or other public funding agencies, be transferred to the university or the management and the payment of compensation to the teachers and the staff retrenched.
(5) The Vidvat-Parishad shall, with prior concurrence of the Vyavasthapana Parishad and approval of the State Government then decide whether the affiliated college or recognised institution or pathashala be permitted the closure.
(6) If the university decides to take over the college or recognised institution or pathashala or transfer the same to another management, the procedure to be followed shall be such as may be prescribed.
(7) The procedure to effect the closure shall be in phases so as to ensure that the students already admitted to the college or recognised institution or pathashala are not affected, and that the first year shall be closed first and no new admissions shall be such as may be prescribed.