(1) No management of an institution shall be allowed to close down the institution without prior permission of the Government.
(2) The management desirous of closing down the institution shall apply to the Board on or before the last day of April of the preceding year, stating fully the grounds for closure, and giving details of the assets in the form of buildings and equipment’s, their original costs, the prevailing market value and the grants so far received by it from the Government or from public funding agencies.
(3) On receipt of such an application, the Board shall cause to make enquiries as it may deem fit, to assess and determine whether the institution be permitted to effect the closure. The Board may examine whether the closure should be avoided by providing necessary assistance or taking over of the institution by the Government or transferring it to another management.
(4) If the Board decides to recommend the closure, it shall prepare and submit to the Government, a report on the extent of damages or compensation to be recovered from the management and the assets created, utilizing the funds provided by the Government or other management and the payment of compensation to the teachers and the staff retrenched.
(5) If the Board has recommended the closure of the affiliated institution, the Government may issue the order of closure.
(6) If the Government decides to take over the institution or transfer the same to another management, the procedure to be followed shall be such as may be laid down, by notification in the Official Gazette, by the Government.
(7) The procedure to effect the closure shall be in phases so as to ensure that the students already admitted to the 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 laid down, by notification in the Official Gazette, by the Government.