The Uttar Pradesh Education Institutions (Prevention of Dissipation of Assets) Act, 1974

THE UTTAR PRADESH EDUCATIONAL INSTITUTIONS (PREVENTION 
OF DISSIPATION OF ASSETS) ACT, 1974 
[U. P. ACT NO. 3 OF 1975]  
ARRANGEMENT OF SECTIONS 
Sections:- 
1- Short title and extent  
2- Definitions  
3- Submission of inventory of property  
4- Prevention of Dissipation  
5- Previous approval necessary for transfer of property  
6- Powers of  Director  
7- Penalty  
8- Protection of  action taken under this Act  
 
 
THE UTTAR PRADESH EDUCATIONAL INSTITUTIONS (PREVENTION  
OF DISSIPATION OF ASSETS) ACT, 19741 
[U. P. ACT NO. 3 OF 1975] 
 
[Passed in Hindi by the Uttar Pradesh Legislative Assembly on August 7, 1974 and 
by the Uttar Pradesh Legislative Council on August 14, 1974.  
Received the assent of  the President on Februa ry 17, 1975 under Article 201 of 
‘the Constitution of India’, and was published in th e Uttar Pradesh Gazette Extra ordinary 
dated March 3, 1975.]  
AN 
ACT 
to provide for measures to prevent the dissipation  of the assets of educational 
institutions  
IT IS HEREBY enacted in the Twenty -fifth Year of the Republic of India as 
follows-: 
Short title and  
extent  
1. (1)  This Act may be called the Uttar Pradesh Educational Institutions (Prevention 
of Dissipation of Assets) Act, 1974.  
(2)  It extends to the whole of Uttar Pradesh.  
 
Definitions  2. In this Act, unless the context otherwise requires :-  
(a) ‘director’ means the Director of Education (Higher Education) or the 
Director of Educat ion (Secondary Educatio n), as the case may be, and 
includes a n Additional Director of Edu cation, Joint Director of Educa tion, 
Deputy Director of Edu cation, District Inspector of Scho ols or a Regional 
Inspectors of Girls Schools, authorized by the Director in this behalf;   
(b) ' institution' or 'educational institution' means an institution 
recognized by the Board of  High School and Intermediate Education, Uttar 
Pradesh, or a degree college or a post -graduate college af filiated to or 
recognized by a University established by or un der an Uttar Pradesh Act, but 
does not include an institution which is m aintained by the Central 
Government, the State Government or a local authority;  
(c) 'management'  in relation  to an institution, means the managing 
committee or other body or person ch arged with managing the affairs of' that 
institution;  
(d) 'property'  in relation to an institution, includes all im movable 
properties belonging t o or endowed wholly or purely for the benefit of the 
institution, including lands, buildings and all other rights and interests arisin g 
out of such property as may be in the ownership, possession, power or control 
of the Management.  
 
Submission of  
inventory of  
property  
3. The Management of every institution shall furnish to the Director initially, 
within a period of three months from the date of commencement of this Act, 
and there after annually by 30th day of September, an inventory of all 
properties belonging to or endowed for purposes of the institution together 
with such particulars as may be considered necessary by the Director in the 
form prescribed by him.  
  
 
1.  For statement of objects and reasons see, U, P. Gazette Extra ordinary, dated July 23 1974.  
 
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[The Uttar Pradesh Educational Institutions (Prevention of Dissipation of Assets) Act, 1974]      [Section 4-5] 
Prevention of 
Dissipation  
4. (1)  Notwithstanding, anything in any other law for the time being in force, the 
management shall no t incur any expenditure which is not in conformity with 
the aims a nd 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 int erest of the institution, 
and which is not sanctioned under this Act.  
(2) Without prejudice to th e generality of provisions of sub -section (1 ), the  
Director may by gene ral or special order prohibit the management from 
incurring any sp ecified expenditure or expenditure on any specified Item or 
any expenditure beyond a specified limit or except in accord ance 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 managem ent shall not incur i t without the prior sanction in 
writing of the Director.  
Explanation-- Any expenditure in respect of any item which is authorized by or 
under the Intermed iate Education Act, 1921, the Uttar Pradesh High Schools 
and In termediate Colleg e (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 Gov ernment or of the 
Director or under any decree of a court, if it is i n 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 orde r within eight weeks from 
the date of receipt of the representatio n or application and of such other 
documents or information  as may be required by him in that behalf, his 
sanction to the expend iture 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 sub -
section (4) it may prefer a n appeal to the State Govern ment within thirty days 
from the date of comm unication of the order, and the decision of the State 
Government thereon shall be final.  
 
Previous 
approval 
necessary for  
transfer of  
property  
5. (1)  Notwithstanding anything in any other law for the time b eing in force, no 
transfer of propert y belonging to or endowed for purposes of an educational 
institution shall be valid unless prior written sanction of the Director, on the 
ground of  the transfer being necessary or beneficial to or expedient in the 
interest of the institution, has been obtained.   
 
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[The Uttar Pradesh Educational Institutions (Prevention of Dissipation of Assets) Act, 1974]      [Section 6-8] 
  (2) The management, if aggrieved by  an order of the Director re fusing sanction 
under sub-section (1), may within thirty days from the date of communication 
thereof to it app eal against that order to the District Judge within whose 
jurisdiction the said institution or the property concerned lies, and the order of 
the District Judge in appeal shall be final. 
 
Powers of  
Director  
6. For the purposes of an inquiry under sub -section (4) of section 4 or sub -
section (1) of section 5, the Di rector shall have the follow ing powers, 
namely:-- 
(a) by himself or with such assistance as he may deem fit to enter t he 
premises of any educational institution ;   
 
(b) by himself or with such assistance as he may deem fit, to inspect all 
property belongin g to, and all records and docu ments relating to the 
educational institutions;  
(c) to call for any reports, statement s, ac counts or other in formation 
relating to the fun ds, property or income of the institution at such time and 
place and in such form as he may direct;  
(d) to take or direct the management or any other person in charge of or 
having concern with th e administration of the institution to take measures for 
the, protection of the property of the institution; and  
(e) to direct the management or any other person in charge of or having 
concern with the admi nistration of the institution to take measures for the 
recovery of any property lost to the institution.  
 
Penalty  7. If any member of the management of any educational inst itution or any other 
person in -charge of or having concern with the administra tion of any such 
institution:-   
(a) refuses, neglects or fa ils to comply with the provisions of this Act, or 
the orders and directions issued thereunder or obstructs any pr oceedings taken 
under this Act ; or  
(b) refuses, neglects or fails to furnish any reports, statements, accounts or 
other information called for under this Act, such member or other person shall 
be punishable with imprisonment which may extend to one year or with fine 
or with both. 
 
Protection of  
action taken  
under this Act 
8. (1)  No officer or servant of the State Government shall b e liable in any civil or 
criminal proceedings in respect of any act done or purporting to be  done in 
good faith in pursuance of this Act or any order made thereunder.  
(2)  No suit or other legal proceedings shall lie against the State Government for 
any damage caused or likely to be caused or any injury suffered or likely to be 
suffered by virtue of anything in good faith done or intended to be done in 
pursuance of this Act or any order made  thereunder.   
 
 
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