Section 7: Endowment Fund.

(1) The Endowment Fund in respect of each Private University in the form of an account payee cheque issued by a Scheduled Bank in favour of Director of Higher and Technical Education, Meghalaya shall be deposited by the concerned University with Director of Higher and Technical Education, Meghalaya. (2) The Directorate of Higher and Technical Education shall deposit the Endowment Fund received from the concern Private University in a scheduled Bank in a Fixed Deposit without delay and in any case not later than two working days after the receipt of the account payee cheque in his favour by the University. (3) Not exceeding 75 of the interest accruing from the Endowment Fund in the fixed deposit shall be used for the purpose of development work of the University, not less than 20 of such interest shall be reinvested in the Endowment Fund and 5 thereof shall be utilized by State Government for funding the Private Universities Regulatory Board set up as envisaged at Section 11 herein below. (4) In case the Private University or the sponsoring body contravenes any of the provisions of this Act, regulations or rules made there under, a part or the whole of endowment fund may be forfeited by the Government. However, before such forfeiture, the Government shall serve a show cause notice on the university or its sponsor and give them an opportunity to be heard. (5) The Government shall, among other things, duly consider the reply submitted by the sponsoring body or private university. (6) In case the reply to show cause notice issued under sub-section (4) 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. (7) The forfeited amount of endowment fund shall be used in the manner as specified in the relevant provisions of the governing Act.