(1) Without prior approval of the Government, University shall not,-
(a) create any new posts of teachers, officers or other employees ;
(b) revise pay, allowances, post-retirement benefits and other benefits of its teachers, officers and other employees ;
(c) grant any special pay, allowance or other extra remuneration of any description whatsoever, including ex-gratia payment or other benefits having financial implication, to any of its teachers, officers or other employees ;
(d) divert any earmarked funds received for any purpose other than that for which it was received ;
(e) incur expenditure on any developmental work from the funds received from the Government or University Grants Commission or any person or body for the purposes other than the purposes for which the funds are received ;
(f) take any decision regarding affiliated colleges resulting in increased financial liability, direct or indirect, for the Government.
(2) The University shall be competent to incur expenditure from the funds received from,-
(a) various funding agencies without any share or contribution from the Government ;
(b) fees for academic programmes started on self-supporting basis ;
(c) contribution received from the individuals, industries, institutions, organisations or any person whosoever, to further the objectives of the University ;
(d) contributions or fees for academic or other services offered by the University ;
(e) development fund, if any, established by the University ; for the purposes of-
(i) creation of posts in various categories for specific period ; (ii) granting pay, allowances and other benefits to the posts created through its own funds, provided those posts are not held by such persons, who are holding the posts for which Government contribution is received ;
(iii) starting any academic programme on self-supporting basis ;
(iv) incurring expenditure on any development work ; without, referring the matter for approval of the Government provided there is no financial liability, direct or indirect, immediate or in future on the Government.
(3) The Government may, in accordance with the provisions contained in this Act, for the purpose of securing and maintaining uniform standards, by notification in the Official Gazette, prescribe a Standard Code providing for the classification, manner and mode of selection and appointment, absorption of teachers and employees rendered surplus, reservation of posts in favour of members of the Scheduled Castes, Scheduled Tribes and Other Backward Classes, duties, workload pay, allowances, post-retirement benefits, other benefits, conduct and disciplinary matters and other conditions of service of the officers, teachers and other employees of the University and the teachers and other employees in the affiliated colleges and recognised institutions (other than those managed and maintained by the Government, Central Government and the local authorities). When such code is prescribed the provisions made in the Code shall prevail and the provisions made in Statutes, Ordinances, Regulations and Rules made under this Act ; for matters included in the Code shall, to the extent to which they are inconsistent with the provisions of the Code, be invalid.
(4) In case of failure of the University to exercise powers or perform duties specified in section 5 or where the University has not exercised such powers or performed such duties adequately, or where there has been a failure to comply with any order issued by Government, the Government may, on making such enquiry as it may deem fit, issue a directive to the University for proper exercise of such powers or performance of such duties or comply with the order ; and it shall be the duty of the University to comply with such direction.
(5) The Government may carry out test audit or full audit of the accounts of the University or a college, school or institution conducted by the University regularly at such intervals as the Government may deem fit.