(1) No management of a college or recognised institution shall be allowed to close down the college or recognised institution without prior permission of the State Government.
(2) The management desirous of closing down the college or recognised institution 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 equipments, their original cost, the prevailing market value and the grants so far received by it either from the University Grants Commission, the Government or from public funding agencies.
(3) On receipt of such an application, the Academic Council shall cause to make inquiries as it may deem fit, to assess and determine whether the college or recognised institution be permitted to effect the closure. The Academic Council may examine whether the closure should be avoided by providing necessary assistance or taking over of the college or institute by the University or transferring it to another management.
(4) If the Academic Council decides to recommend the closure, it shall prepare and submit to the Management Council, 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 Government or other public funding agencies, be transferred to the University or other management and the payment of compensation to the teachers and the staff retrenched.
(5) The Academic Council shall, with prior concurrence of the Management Council and approval of the Government, then decide whether the affiliated college or recognised institution be permitted the closure.
(6) If the University decides to take over the college or recognised institution or transfer the same to another management, the procedure to be followed shall be such as may be prescribed by Statutes.
(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 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 Statutes.