(1) No management of an institution shall be allowed to close down the institution without prior permission of the Government and other regulatory authority which gives approval to start the institution.
(2) The management desires of closing down the institution shall apply to the Board, as per the schedule declared by the Board or appropriate regulatory authority, as the case may be, 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 far received by it from the Government or from public funding agencies :
Provided that, the management of unaided institution shall also give undertaking on affidavit that that liabilities, including emoluments payable to teaching and non-teaching staff, arising out of closure of institution, shall be solely that of the management of such institution.
(3) On receipt of such 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 :
Provided that, no application for closure shall be rejected by the Board unless an opportunity of being heard is given to the management.
(4) If the Board decides to recommend the closure, it shall prepare and submit to the Government and wherever required to the regulatory authority also a report on the extent of the assets created by utilizing the funds provided by the Government or other public funding agencies, to be transferred to the Government.
(5) If the Board has recommended the closure of the institution and the prior permission for closure has been granted by the regulatory authority which has given approval to start the institution then, the Government may issue the order for closure.
(6) The procedure given in sub-section (1) to (5) shall be applicable mutatis mutandis to closure of the course or programme affiliated to the Board.]