(1) Notwithstanding, anything in any other law for the time being in force, the management shall not incur any expenditure which is not in conformity with the aims and objects of the educational institution or is so excessive as to be disproportionate to the income thereof or is, for any other reasons, such as no prudent management would deem fit to incur in the interest of the institution, and which is not sanctioned under this Act.
(2) Without prejudice to the generality of provisions of sub-section (1), the Director may by general or special order prohibit the management from incurring any specified expenditure or expenditure on any specified Item or any expenditure beyond a specified limit or except in accordance with specified conditions and restrictions on any specified item.
(3) (a) Where the management is of opinion that certain expenditure is necessary or expedient but the nature or amount of the expenditure is disproportionate to its income, the management shall not incur it without the prior sanction in writing of the Director.
Explanation-- Any expenditure in respect of any item which is authorized by or under the Intermediate Education Act, 1921, the Uttar Pradesh High Schools and Intermediate College (Payment of Salaries of Teachers and other Employees) Act, 1971, the Uttar Pradesh State Universities Act, 1973, or any rule, regulation or bye-law or any Statute or Ordinance made under any of these enactments or under any order of the State Government or of the Director or under any decree of a court, if it is in accordance with the rules, norms or principles or within the limits prescribed by or under the aforesaid enactment, rule, regulation, bye-law, Statute, Ordinance, order or decree shall not require the sanction of the Director under this sub-section.
(b) The management shall not incur any expenditure which is prohibited under sub-section (2).
(4) (a) The Director shall, upon a representation being made to him against an order under sub-section (2) or upon an application for sanction being made to him under sub-section (3), and upon consideration of such matters and information as he may consider necessary, give his orders expeditiously.
(b) On failure of the Director to pass his order within eight weeks from the date of receipt of the representation or application and of such other documents or information as may be required by him in that behalf, his sanction to the expenditure proposed to be incurred by the management shall be deemed to have been granted.
(c) The Director may allow or refuse the representation or application in whole or in part.
(5) If the management be aggrieved against an order of the Director under subsection (4) it may prefer an appeal to the State Government within thirty days from the date of communication of the order, and the decision of the State Government thereon shall be final.