(1) the Deputy Director may, at any time, for the purposes of this Act inspect or cause to be inspected any college 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) Every direction for retrenchment under sub-section (1) shall be issued after obtaining the prior approval of the Director of Education and shall specify by future date on which such retrenchment shall become operative.
(3) Where any direction for retrenchment is issued in accordance with sub-sections (1) and (2), the teacher or the employee concerned shall, with effect from the date specified in such direction, cease to be a teacher or employee of the college for the purposes of the maintenance grant.