(1) Where the State Government is satisfied that the University is not functioning in accordance with the provisions of this Act, it shall require the University to show cause within such time, which shall not be less than two months, as to why the University should not be derecognised.
(2) If, upon receipt of the reply of the University to the notice given under sub-section (1) the State Government is satisfied that a prima facie case of mismanagement or violation of the provisions of this Act, the Statutes, the Ordinances made thereunder, it shall order such enquiry as it deems necessary.
(3) For the purposes of an inquiry under sub-section (2), the State Government shall, by notification, appoint an officer or authority as the enquiring authority to enquire into and report upon the allegations of mismanagement and violation of the provisions of this Act, the Statutes, the Ordinances or any direction issued thereunder.
(4) Wherever according to the State Government any enquiry is to be instituted with regard to the affairs of the University it shall proceeds for enquiry without suspending the senate by issuance of an appropriate notification.
(5) Every inquiring authority appointed under sub-section (3) shall, while performing its functions under this Act have all the powers of a Civil Court under the Code of Civil Procedure, 1908 trying a suit and in particular in respect of the following matter, namely—
(a) summoning and enforcing the attendance of any witness and examining him/her on oath;
(b) requiring the discovery and production of any document;
(c) requisitioning any public record or copy thereof from any office;
(d) receiving evidence on affidavits;
(e) any other matter which may be prescribed.
(6) If, upon receipt of the inquiry report, the State Government is satisfied that the University has been mismanaged or has violated provisions of this Act, the State Government shall issue notification regarding the derecognition of the University.
(7) Under sub-section (6), the expenditure for administration of the University during the taking over the liabilities of the University shall be met out of the permanent endowment fund, the general fund and the development fund. If the funds referred to above are not sufficient to meet the expenditure of the University during the taking over the liabilities of the University such expenditure may be met by disposing of the properties or assets of the University by the State Government.
(8) Prior to the issuance of any notification under sub-section (6) it shall necessarily be placed before both the houses of the State Legislature and shall have to be passed with majority by the State Legislature.