(1) There shall be established an Endowment Fund, as soon as may be after coming into force of this Act with an amount of rupees one crore which has been deposited by the Sponsoring Body with the State Government
(2) The Endowment Fund shall be used as security deposit to ensure that the University complies with the provisions of this Act and functions as per provisions of this Act, Statutes and Ordinances. The State Government shall have the powers to forfeit in the prescribed manner, a part or whole of the Endowment Fund in case the University or the Sponsoring Body contravenes any of the provisions of this Act of Statutes, Ordinances, Regulations or rules made there under.
(3) Income from the Endowment Fund ma be utilized for development of infrastructure of the University but shall not be utilized to meet out the recurring expenditures of the University.
(4)The amount of the Endowment Fund shall be invested and kept invested until the dissolution of the University in long term securities issued to guaranteed by the State Government or deposited and kept deposited until the dissolution of the University in the interest bearing Personal Deposit Account of the Sponsoring Body in the Government Treasury.
(5) In case of investment in long term security, the certificates of the securities shall be kept in the safe custody of the State Government and in case of deposit in the interest bearing Personal Deposit Account in Government Treasury, the deposit shall be made with the condition that the amount shall not be withdrawn without the permission of the State Government.
9. General Fund - The university shall establish a fund, which shall be called the General Fund to which following shall be credited, namely :
(a) fees and other charges received by the University ;
(b) any contributions made by the Sponsoring Body ;
(c) any income received from consultancy and other work undertaken by the University in pursuance of its objectives ;
(d) trusts, bequests, donations, endowments and any other grants, and
(e) all other sums received by the University.