(1) No management of an institution shall be allowed to close down the institution without prior permission of the Government.
(2) It shall be the sole responsibility of the management desirous of closing down the institution to settle all types of liabilities, financial or otherwise, including and related to teaching and nonteaching staff of such institutions and the Government or Board shall not be liable for such responsibilities at any stage.
(3) The management desires 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 pointing out the assets in the form of building and equipments, their original costs, the prevailing market value and the grants so for received by it from the Government or from public funding agencies.
(4) 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 institute by the Government or transferring it to another management.
(5) 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 whether the assets created utilising the funds provided by the Government or other public funding agencies, be transferred to the Government or other management, and the payment of compensation to the teachers and the staff retrenched.
(6) If the Board has recommended the closure of the affiliated institution, the Government may issue the order for closure.
(7) 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 prescribed by the Government.
(8) 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 prescribed by the Government.