(1) The management of every college shall, for the purpose of disbursement of salaries to its teachers and employees, open in a Scheduled Bank or a co-operative bank a separate account (hereinafter called "Salary Payment Account") to be operated jointly by a representative of the management and by the Deputy Director or such other officer as may be authorised by the Deputy Director in that behalf:
Provided that after the Salary Payment Account is opened the Deputy Director may, if he is, subject to any rules made under section 12, satisfied that it is expedient in the public interest so to do instruct the bank that the account shall be operated by the representative of the management alone, and may at any time revoke such instruction:
Provided further that in the case referred to in sub-section (3) or where in any other case after giving to the management an opportunity of showing cause, the Deputy Director is of opinion that it is necessary or expedient so to do, the Deputy Director may instruct the bank that the Salary Payment Account shall be operated only by himself or by such other officer as may be authorised by him in that behalf and may at any time revoke such instruction.
(2) The State Government may, from time to time, require by general or special order that the management of a college shall deposit in the Salary payment Account such portion of the amount received from students as fees and also such portion of the income, if any, received from any property, movable or immovable belonging to or endowed wholly or partly for the benefit of the college, and by such date, as may be specified in that order and thereupon, the management shall be bound to comply with such directions.
(3) Where the Deputy Director is of opinion that the management has failed to deposit the fees in accordance with the provisions of sub-section (2) or the orders issued thereunder, the Deputy Director may by order, prohibit the Management from realising any fee from the students and thereupon, the Deputy Director may realise the fees (either through the teachers of the college or in such other manner as he thinks fit) directly from the students and shall deposit the fees so recovered in the Salary Payment Account.
(4) The State Government shall also pay into the Salary Payment Account such amount as maintenance grant, which after taking into consideration the amounts deposited under sub-section (2) and (3), is necessary for making payment in accordance with subsection (5).
(5) No money credited to the Salary Payment Account shall be applied for any purpose except the following namely : (a) for payment of salary to the teachers and employees of the college falling due for any period after the commencement of this Act; (b) for crediting the management's contribution, if any to the provident fund account of teachers and employees of the college.
(6) The salary of a teacher or employee shall be paid by transfer of the amount from the Salary Payment Account to his account, if any, in the same bank, or if he has no account in that bank, then by cheque.
(7) In respect of a place where there is no Scheduled Bank or a co-operative bank the provisions of this section shall apply with such modification, as the State Government may, by notification, specify and references in this section to a bank shall in that case be construed as references to a post office saving bank.