(1) The endowment fund in the form of a bank guarantee issued by a scheduled bank shall be pledged in the name of the Director of Higher and Technical Education, Meghalaya who shall also be the custodian for all documents and instruments related to the endowment fund and its investment.
(2) In case the private university or the sponsoring body contravenes any of the provisions of the regulations or rules made there under, a part or whole of the endowment fund may be forfeited by the Government but before such forfeiture, a show cause notice shall be served by the Government on the sponsoring body or the private university, as the case may be.
(3) The Government shall, among other things, duly consider the reply submitted by the sponsoring body or private university.
(4) In case the reply to show cause notice issued under subsection (2) is not submitted by the sponsoring body or by the Registrar of the university within 45 days of receipt of the notice, the Government may decide the case on an ex-parte basis.
(5) The forfeited amount of endowment fund shall be used in the manner as specified in the relevant provisions of the governing Act.