(1) The Inspector may, at any time, for the purposes of this Act, inspect or cause to be inspected any institution or call for such information and records (including registers, books of account and vouchers) from its management with regard to the payment of salaries to its teachers or employees or give to its management any direction for the observance of such canons of financial propriety (including any direction for retrenchment of any teacher or employee or for prohibition of any wasteful expenditure) as he thinks fit.
(2) Where a direction under sub-section (1) is given for retrenchment of any teacher or employee, it shall be complied with in accordance with the provisions of the Intermediate Education Act, 1921 and the regulations or, as the case may be, the conditions of service.