The ICFAI UNIVERSITY ACT, 2003

THE ICFAI UNIVERSITY ACT, 2003 
 [Act No. 16 of  2003] 
 
AN 
ACT 
           to establish and incorporate an University in the State with emphasis on providing high quality and 
industry relevant education in the areas of applied financial management, General M anagement, Applies 
Sciences and Technology, sponsored by 1[The ICFAI Society, Hyderabad, Telangana]  and to provide for 
matters connected therewith or incidental thereto.  
 
            It is hereby enacted in the fifty-fourth year of the Republic of India as follows: 
 
CHAPTER -1 
Preliminary 
 
Short title and 
commencement  
1. (1) This Act may be called the ICFAI University Act, 2003. 
(2) It shall be deemed to have come into force on the date, the notification is 
issued by the State Government. 
 
Definitions  2. (1) In this Act, unless the context otherwise requires:- 
(a) “Academic Council” means the Academic Council of the University; 
(b) “Constituent College” means a college or institution maintained by the 
University; 
(c) “Council for Technical Education” means the All India Cou ncil for Technical 
Education established under section 3 of the All India Council for Technical 
Education Act, 1987; 
[(d)“Distance Education system” means the system of imparting education with in 
the State through any means of information technology and c ommunication 
such as multimedia, broadcasting, telecasting online o n internet, other 
interactive metho ds, e -mail, internet, computer, e-learning, correspondence 
course or a combination of any two or more of such means;]1 
(e) “Employee” means employee appoi nted by the University, and includes 
teachers and other staff of the University or of a constituent college; 
(f) “Faculty” means faculty of the University; 
[(g) “ICFAI” means  the ICFAI Society, the sponsoring body of the ICFAI 
University, which is a registered Society at Hyderabad, Telangana;   
(h) “Prescibed”  means prescribed by the statutes; 
 (i) “Principal” in relation to a constituent college, means the Head of the 
constituent college and includes, where there is no Principal, the vice -
principal or any other person for the time being appointed to act as Principal;  
(j) “Regional Center” means a center within the State established or maintained by 
the University for the purpose of coordinating, supervising the work of study 
centres located in the State and for performing such other functions as may be 
conferred on such centres by the Board of Management;   
(k) “State” means the State of Uttarakhand;  
 
1. Substituted by section 3 of Uttarakhand Act No. 03 of 2010.  
2. Substituted by section 3 of Uttarakhand Act No. 11 of 2021. 
 
 
  (l) “Statutes” and “Rules” means, respectively, the Statutes and Rules of the 
University;  
(m) “Study Centre” means a center within the State, established, maintained and 
recognized by the University for the purpose of advising, couns eling or for 
redering such other assistance required by the Students.]2 
(n) “Teacher” means a professor, Associate Professor, Assistant Professor/Lecturer 
or such other person as may be appointed for imparting instruction or 
conduction research in the Univ ersity or in a constituent college and 
institution and includes the principal of a constituent college, in conformity 
with the norms prescribed by the UGC; 
 (o) “UGC” means the University Grants Commission established under the 
University Grants commission Act, 1956  
[(p) “University” means the ICFAI University established under this Act , which 
shall function within the State of Uttarakhand and shall comply with the 
orders and guidelines of the University Grants Commission;]1 
(q) “Visitor” means the Visitor of the University. 
  CHAPTER-II 
The University and its objects 
Proposal for 
the establish -
ment of the 
University 
3. (1) ICFAI shall have the right to establish the University in accordance with the 
provisions of this Act. 
(2) An application containing the propo sal to establish a university shall be made 
to the State Government by the ICFAI. 
The proposal shall contain the following particulars, namely:- 
(b) the objects of the University along with the details of the ICFAI; 
(c)  the extent and status of the University and the availability of land; 
(d) The nature and type of programs of study and research to be under taken 
in the University during a period of the next five years; 
(e) The nature of facilities, courses of study and research proposed to be 
started; 
(f) The campus developm ent such as buildings, equipment and structural 
amenities; 
(g) The phased  outlays of capital expenditure for a period of the next five 
years; 
(h) The item -wise recurring expenditure, sources of finance and estimated 
expenditure for each student; 
(i) The scheme for mob ilizing resources and the cost of capital thereto and 
the manner of repayments to each source; 
(j) The scheme of generation of funds eternally through the recovery of fee 
from students, revenues anticipated from consultancy and other activities 
relating to the objects of the University and other anticipated incomes; 
(k) The details of expenditure on unit cost, the extent of concessions or 
rebates in fee, freeship and scholarship for students belonging to 
economically weaker sections and the fee structure indication varying rate 
of fee, if any, that would be levied on non resident Indians and students of 
other nationalities; 
  
1. Substituted by section 2 of Uttarakhand Act No. 05 of 2010. 
2. Substituted by section 3 of Uttarakhand Act No. 11 of 2021. 
  (l) The year of experi ence and expertise in the concerned discipline at the 
command of the ICFAI as well as the financial resources; 
(m) The system for selection of students to the courses of study at the 
University; and 
(n) Status of fulfillment of such other conditions as may be requ ired by the 
State Government to be fulfilled before the establishment of the 
University. 
 
Establishment 
of University 
4. (1) Where the state Government, after such inquiry as it may deem necessary, is 
satisfied that ICFAI, Hyderabad has fulfilled the conditio ns specified in sub -
section (2), of section 3, it may direct the ICFAI, Hyderabad to establish an 
endowment fund. 
(2) After the establishment of the endowment fund, the State Government may, 
by notification in the Official Gazette, accord sanction for establis hment of 
the University. 
(3) The headquarters of University shall be at Dehradun, [Uttarakhand]1   and it 
may have campuses or Regional Centres, Study Centres anywhere in India or 
over seas with approval of the Visitor. 
(4) The Chancellor, the Vice -Chancellor, mem bers of the Board of Governors, 
members of the Board of Management and the Academic Council for the time 
being holding office as such in the University so established, shall constitute a 
body corporate and can sue and be sued in th4 name of the University. 
(5) On the establishment of the University under sub -section (2), the land and 
other movable and immovable properties acquired, created, arranged or built 
by the University for the purpose of the University in the State of 
[Uttarakhand]1   shall vest in the University. 
(6) The land, building and other properties acquired for the University shall not 
be used for any purpose, other than that for which the same is acquired. 
 
University no 
to be entitled to 
financial 
assistance 
5. The University shall be self -financing and shall neither make a demand nor 
shall be entitled to a ny grant in-aid or any other financial assistance from the 
State Government or any other body or corporation owned or controlled by 
the State Government. 
 
No power to 
affiliate any 
institution  
6. The University may have constituent colleges, Regional Centers and Study 
Centres but shall have no power to admit any other college or institution to 
the privileges of affiliation. 
 
Objects of the 
University 
7. The objects for which the University is established are as follows:- 
(a) To provide instruction, teaching, training and research in specialized fields of 
Finance and Management including financial Analysis, Banking, Insurance, 
Financial Services, Financial management, Gener al management, various 
branches of Technology and  related subjects, and make provision for 
research, advancement and dissemination of knowledge therein, 
(b) [To establish the University  campus in the State of Uttarakhand  and to have 
study centers at different places within the State; 
(c) To offer continuing and distance education programmes within the State;]2 
  
1. Substituted by section 3 of Uttarakhand Act No. 05 of 2010. 
2. Subs. by section 4 ibid. 
  (d) To institute degrees, diplomas, certificates and other academic distinctions on 
the basis of examination, or any other method of evaluation; 
(e) To collaborate with any other college or University, research institution, 
industry association, professional association or any other organization, in 
India or overseas, to conceptualize, design and develop  specific educational 
and research programs, training programs and exchange programs for 
students, faculty members and others; 
(f) To disseminate knowledge through seminars, conferences, executive 
education programs, community development programs, publication s, and 
training programs; 
(g) [To undertake program mes for the training and development of faculty 
members of the University and other institutions within the State; 
(h) To undertake collaborative research programmes with any organization within 
the State and commercialization of the technologies;]1 
(i) To do all things necessary or expedient to promote the above objectives; 
(h)  To pursue any other objective as may be approved by the State Government. 
 
Powers of the 
University 
8. (1) The University shall have the following powers, viz:- 
(a) to establish, maintain and recognize such Regional centres and study 
centres as may be determined by the University from time to time in the 
manner laid down by the statutes; 
(b) to carry out all such other activities as may be necessary or fe asible in 
furtherance of the object of the University; 
(c) to confer degrees or other academic distinctions in the manner and under 
conditions laid down in the statutes;  
(d) to institute and award fellowships, scholarships and prizes etc. in 
accordance with the statutes; 
(e) to demand and receive such fees, bills, invoices and collect charges as 
may be fixed by the statutes or rules, as the case may be; 
(f) to make provisions for extra curricular activities for students and 
employees; 
(g) to make appointments of the faculty, officers and employees of the 
University or a constituent college, Regional Centres, study Centres; 
(h) to receive donations and gifts of any kind and to acquire, hold, manage, 
maintain and dispose of any movable or immovable property, including 
trust and endo wment properties for the purpose of the University or a 
constituent college, or a Regional Centre, study centre; 
(i) to institute and maintain halls and to recognize places of residence for 
students of the University or a constituent college; 
(j) to supervise and control the residence, and to regulate the discipline 
among the students and all categories of employees and to lay down the 
conditions of service of such  employees, including their code of conduct; 
(k) to create Academic, Administrative and support staff and  other necessary 
posts; 
 
1. Substituted by section 3 of Uttarakhand Act No. 05 of 2010. 
  (l) to co-operative and collaborate with other Universities in such a manner 
and for such purposes as the University may determine from time to time; 
(m) to provide distant ed ucation system and the manner in which distance 
education in relation to the academic programmes of the University may 
be organized; 
(n) to organize and conduct refresher courses, orientation courses workshops, 
seminars and other programmes for teachers, lesso n writers, evaluators 
and other academic staff; 
(o) to determine standards of admission to the University or a constituent 
college, regional centres, study centres with the approval of Academic 
council; 
(p) to make special provision for students belonging to the S tate of 
[Uttarakhand]1  for admission in any course of the University or in a 
constituent college, Regional Centre or study centre; 
(q) to do all such other acts or things weather incidental to the powers 
aforesaid or not, as may be necessary to further the ob jects of the 
University; 
(r) to prescribe such courses for bachelor Degree, post graduate, Doctor of 
Philosophy, Doctor of Science Degrees and Research which would be 
covered by UGC and AICTE but University shall have right to start 
diplomas, certificates etc. in its own subjects; 
(s) to clearly set apart the academic activities of the University from the 
activities of the Trust; 
(t) to provide for the preparation of instructional materials, including films, 
cassettes, tapes, video cassettes, CD,VCD and other software; 
(u) to recognize examinations of, or periods of study (whether in full or in 
part) of other Universities, Institutions or other places of Higher learning 
as equivalent to examinations or periods of study in the University and to 
withdraw such recognition at any time;  
(v) to raise, collect, subscribe and borrow with the approval with the 
Governing Body whether on the security of the property of the University, 
money for the purposes of the University; 
(w) to enter into, carry out, vary or cancel contracts. 
 
University 
open to all 
classes, castes, 
creed and 
gender  
9. The University shall be open to all persons irrespective of class, creed or 
gender: 
Provided that nothing in this section shall be deemed to requires the 
University from making special provisions for admi ssion to students of the 
state of [Uttarakhand]. 
 
National 
Accreditation 
10. The University will seek accreditation from respective national accreditation 
bodies. 
 
  CHAPTER-III 
Officers of the University 
Officers of the 
University 
11. The following shall be the officers of the University:-- 
(a) the Visitor; 
(b) the Chancellor; 
(c) the Vice-Chancellor; 
 
1. Substituted by section 2 of Uttarakhand Act No. 05 of 2010. 
  (d) the Pro Vice-Chancellor; 
(e) the Registrar; 
(f) the Finance Officer; and 
(g) such other officers as may be declar ed by the statutes to be officers of 
the University. 
 
The Visitor 12. (1) The Governor of Uttarakhand will be the Visitor of the University. 
(2) The Visitor shall, when present, preside at the convocation of the University 
for conferring degrees and diplomas. 
(3) The Visitor shall have the following powers namely :- 
(a) To call for any paper or information relating t o the affairs of the 
University; 
(b) On the basis of the information received by the Visitor, if he is satisfied 
that any order, proceeding, or decision taken by any authority of the 
University is not in conformity with the Act, Regulations, Ordinances or 
Rules, he may issue such directions as he may deem fir in the interest of 
the University and the directions so issued shall be complied with by al l 
concerned. 
 
The Chancellor 13. (1) The ICFAI shall, with the prior approval of the Visitor, appoint a person 
suitable to be appointed as chancellor, as the chancellor of the ICFAI 
University. 
(2) The Chancellor so appointed shall hold the office for a period of five years. 
(3) The Chancellor shall have such powers as may be conferred on him by this 
Act or the Statutes made thereunder. 
 
The Vice-
Chancellor 
14. (1) The Vice-Chancellor shall be appointed on such terms and conditions as may 
be prescribed by the statutes for a term of thre e years by the Chancellor from 
a panel of three persons recommended by the committee constituted in 
accordance with the provisions of sub-section (2). 
(2) The committee referred to in sub -section (1) shall consist of the following 
persons, viz:- 
(a) One person nominated by the Visitor; 
(b) One person nominated by the Chancellor; 
(c) The principal Secretary/Secretary to the State Government in the higher 
Education Department; 
(d) To nominees of the Board of Governors, one of whom shall be nominated 
as the Governor of the committee by the Board of Governors. 
(3) The committee shall, on the basis of merit, prepare a panel of names of three 
persons suitable to hold the office of the Vice -Chancellor and forward the 
same to the Chancellor alongwith a concise statement showing the academi c 
qualifications and other distinctions of each person. 
(4) The Vice-Chancellor shall be the Principal executive and academic officer of 
the University and shall exercise general supervision and control over the 
affairs of the University and give effect to the  decisions of the authorities of 
the University. 
(5) Where any matter other than the appointment of a teacher is of urgent nature 
requiring immediate action and the same could not be immediately dealt with 
by any officer or the authority or other body of the U niversity empowered by 
or under this Act to deal with it, the Vice -Chancellor may take such action as 
he may deem fit with the prior approval of the chancellor. 
  (6) The Vice-Chancellor shall exercise such other powers and perform such other 
duties as may be laid down by the statutes or the rules. 
(7) The Chancellor is empowered to remove the Vice -chancellor after due 
enquiry. It will be open to the Chancellor to suspend the Vice -Chancellor 
during enquiry depending upon the seriousness of the charges, as he may 
deem fit. 
 
The Pro-Vice-
Chancellor 
15. A Pro-Vice-Chancellor may be appointed by the Vice Chancellor with prior 
approval of the chancellor in such manner and shall exercise such powers and 
perform such duties as may be prescribed by statutes. 
 
Deans of 
faculties  
16. Deans of faculties shall be appointed by the chancellor in such manner and 
shall exercise such powers and perform such duties as may be prescribed by 
statutes. 
 
The Registrar 17. (1) The Registrar shall be appointed by the chancellor in such mann er and on 
such terms and conditions as may be prescribed. 
(2) All contracts shall be entered into and signed by the Registrar on behalf of the 
University. 
(3) The Registrar shall have the power to authenticate records on behalf of the 
University and shall exercise such other powers and perform such other duties 
as may be prescribed or may be requires from time to time, by the Chancellor 
or the Vice-Chancellor. 
(4) The Registrar shall be responsible for the due custody of the records and the 
common seal of the Universit y and shal l be bound to place before the 
Chancellor, the Vice C hancellor or any other authority, all such information 
and documents as may be necessary for transaction of their business. 
 
The Finance 
Officer 
18. The finance Officer shall be appointed by t he Chancellor in such manner and 
shall exercise such powers and perform such duties as may be prescribed. 
 
Other Officers 19. The manner of appointment, terms and conditions of service and powers and 
duties of the other officers of the University shall be  such as may be 
prescribed.  
 
  CHAPTER-IV 
Authorities of the University 
 
Authorities of 
the University 
20. The following shall be the authorities of the University, namely:- 
(a) The Board of Governors; 
(b) The Board of management; 
(c) The Academic council; 
(d) The Finance Committee; and 
(e) Such other authorities as may be declared by the Statutes to be the 
authorities of the University. 
 
The Board of 
Governors and 
its powers 
21. (1) The Board of Governors shall consist of— 
(a) The Chancellor          -  Chairman; 
(b) The Vice-Chancellor  -  Member Secretary; 
  (c) Principal Secretary/S ecretary to the State Government in the Hi gher 
Education Department or a S ecretary to the State Government 
nominated by the State Government. 
(d) Three persons nominated by the ICFAI, Hyderabad; 
(e) A nominee of the UGC. 
(f) Two eminent educationists and academicians, out of whom at least one 
will be a woman, nominated by the Visitor; 
(g) Two academicians out of whom at least one will be a woman nominated 
by the Chancellor. The Registrar shall be an ex -officio Secretary of the 
Board of Governors. 
(2) The Board of Governors shall be the principal governing body of the 
University and shall have the following powers, namely:- 
(a) to appoint the Statutory Auditors of the University; 
(b) to lay down policies to be pursued by the University; 
(c) to review decisions of the other authorities of the University if they are 
not in conformity with the provisions of this Act, or the statutes or the 
Rules;  
(d) to approve the budget and annual report of the University; 
(e) to make new or additional statutes or am end or repeal the earlier 
Statutes and Rules; 
(f) to take decision about voluntary winding up of the University; 
(g) to approve proposals for submission to the State Government; and 
(h) to take such decisions and steps as are found desirable for effectively 
carrying out the objects of the University. 
(3) The Board of Governors shall, meet atleast thrice a year at such time and 
place as the Chancellor thinks fit.  
 
The Board of 
Management 
22. (1) The Board of management shall consist of:-- 
(a) The Vice-Chancellor; 
(b) The Registrar; 
(c) Four persons, nominated by the ICFAI, Hyderabad; 
(d) Two Deans of the faculties as nominated by the Chancellor; 
(e) Principal Secretary/Secretary to the State Government in the Higher 
Education Department or his nominee not below the rank of Joint 
Secretary to the State Government. 
The Vice-Chancellor shall be the Chairperson of the Board of management 
and the Registrar shall be the secretary of the Board of Management. 
(2)  The powers and functions of the Board of management shall be such as may 
be prescribed. 
 
The Academic 
council 
23. (1) The Academic Council shall consist of:- 
(a) The Vice-Chancellor      –Chairman; 
(b) The Registrar                  – Secretary; 
(c) Such other members as may be prescribed in the statutes. 
 
  (2) The Academic Council shall be the principal academic  body of the University 
and shall, subject to the provisions of this Act, the Statutes and the Rules, co -
ordinate and exercise general supervision over the academic policies of the 
University. 
 
The Finance 
Committee 
24. (1) The Finance Committee shall consist of:- 
(a) The Vice-Chancellor    – Chairman; 
(b) The Registrar                -- Secretary; 
(c) The Finance Officer 
(d) Principal Secretary/Secretary to the State Government in the Higher 
Education Department or his nominee not below the rank of Joint 
Secretary to the State Government; 
(e) Such other members as may be prescribed in the statutes. 
(2) The Finance committee shall be the principal financial body of the University 
to take care of financial matters and shall, subject to the provisions of this 
Act, Rules, Statutes and Ac ts, co -ordinate and exercise general supervision 
over the financial matters of the University. 
 
Other 
Authorities 
25. The constitution, powers and functions of the other authorities of the 
University shall be such as may be prescribed. 
 
Proceedings 
not i nvalidated 
on account of 
vacancy 
 
26. No Act or proceeding of any authority of the University shall be invalid 
merely by reason of the existence of any vacancy or defect in the constitution 
of the authority. 
  CHAPTER-V 
Statutes and Rules 
Statutes  27. Subject to the provisions of this Act, the Statutes may provide for any matter 
relating to the University and staff, as giver below:- 
(a) the procedure for transaction of business of the Authorities of the University 
and the composition of bodies not specified in this Act;  
(b) the operation of the permanent endowment fund, the general fund and the 
development fund; 
(c) the terms and conditions of appointment of the Vice -Chancellor, the Registrar 
and the Finance officer and their powers and functions; 
(d) the mode of recrui tment and the conditions of service of the other officers, 
teachers and employees of the University. 
(e) the procedure for resolving disputes between the4 University and its officers, 
faculty members, employees and students; 
(f) creation, abolition or restructuring of departments and faculties; 
(g) the manner of co -operation with other Universities or institutions of higher 
learning; 
(h) the procedure for conferment of honorary degrees; 
(i) provisions regarding grant of freeships and scholarships; 
(j) number of seats in different courses of studies and the procedure of admission 
of students to such courses including reservation of seats for Uttarakhand  
students; 
(k) the fee chargeable from students for various courses of studies; 
  (l) institution of fellowships, scholarships, studentshi ps, freeshaips, medals and 
prizes; 
(m) procedure for creation and abolition of posts; 
(n) other matters which may be prescribed. 
 
Statutes how 
made 
28. (1) The first statutes framed by the Board of Governors shall be submitted to the 
State Government for its approval , which may, within three months from the 
date of receipt of the statutes give its approval with or without modification. 
(2) Where the State Government fails to take any decision with respect to the 
approval of the statutes within the period specified under s ub-section (1) it 
shall be deemed to have been approved by the State Government. 
 
Power to  
amend the  
Statutes 
 
29. The Board of Governors may, with the prior approval of the state 
Government, make new or additional Statutes or amend or repeal the statutes. 
Rules  30. Subject to the provisions of this Act, the Rules may provide for all or any of 
the following matters, namely:- 
(a) admission of students to the University and their enrolment and continuance 
as such; 
(b) the courses of study to be laid down for all  degrees and other academic 
distinctions of the University;  
(c) the award of degrees and other academic distinctions; 
(d) the conditions of the award of fellowships, scholarships, studentships, medals 
and prizes; 
(e) the conduct of examinations and the conditions and  mode of appointment and 
duties of examining bodies, examiners, invigilators, tabulators and 
moderators; 
(f) the fee to be charged for admission to the examinations, degrees and other 
academic distinctions of the University; 
(g) the conditions of residence of the students at the University or a constituent 
college; 
(h) maintenance of discipline among the students of the University or a 
constituent college; 
(i) all other matters as may be provided in the statues and rules under the act. 
 
Rules how 
made 
31. (1) The Rules shall be made by the Board of Governors and the rules so made 
shall be submitted to the state Government for its approval, which may, 
within two months from the date of receipt of the rules, five its approval with 
or without modification.  
(2) Where the state Govern ment fails to take any decision with respect to the 
approval of the rules within the period specified under sub -section (1), it shall 
be deemed to have been approved by the State Government. 
 
Power to 
amend Rules 
32. The Academic Council may, with the app roval of the Board of management, 
make new or additional rules or amend or repeal the rules, subject to the 
approval of the state Government. 
 
  CHAPTER-VI 
Miscellaneous  
Conditions of 
service of 
employees  
33. (1) Every employee shall be appointed under a w ritten contract, which shall be 
kept in the University and a copy of which shall be furnished to the employee 
concerned. 
(2) Disciplinary action against the students/employees shall be governed by 
procedure prescribed in the statutes. 
(3) Any dispute arising out o f the contract between the University and an 
employee shall, at the request of the employee, be referred to a tribunal of 
arbitration consisting of one member appointed by the Board of Management, 
one member nominated by the employee concerned and an umpir e appointed 
by the chancellor.  
(4) The decision of tribunal in such matter shall be final. 
(5) The procedure for regulating the work of the tribunal shall be such as may be 
prescribed. 
 
Right to appeal 34. Every employee or student of the University or of a cons tituent college, shall 
notwithstanding anything contained in this Act, have a right to appeal within 
such time as may be prescribed, to the b oard of management against the 
decision of any officer or authority of the University or of the principal of any 
such college, and thereupon the Board of management may confirm, modify 
or change the decision appealed against. 
 
Provident fund 
and pension 
35. The University shall constitute for the benefit of its employees such provid ent 
or pension fund and provide such insurance scheme as it may deem fit in such 
manner and subject to such conditions as may be prescribed. 
 
Disputes as to 
constitution of 
University 
authorities and 
bodies 
36. If any question arises as to whether any person has been duly elected or 
appointed as, or is entitled to be a member of any authority or other body of 
the University, the matter shall be referred to the Chancellor whose decision 
thereon shall be final. 
 
 
Constitution of 
committees 
37. Any authority of the University ment ioned in sect ion 20 (1) will be 
empowered to constitute a committee of such authority, consisting of such 
members as such authority may deem fit, and having such powers as the 
authority may deem fit. 
 
Filling of 
casual 
vacancies 
38. Any casual vacancy among the member s, other than ex -officio members, of 
any authority or body of the University shall be filled in the same manner in 
which the member whose vacancy is to be filled up, was chosen, and the 
person filling the vacancy shall be a member of such authority or body  for the 
residue of the term for which the person whose place he/she fills would have 
been a member. 
 
Protection of 
action taken in 
good faith 
39. No suit or other legal proceedings shall lie against any officer or other 
employee of the University for any thing, which is done in good faith or 
intended to be done in pursuance of the provisions of this Act, the Statutes or 
the Rules. 
 
Transitional 
provisions 
40. Notwithstanding anything contained in any other provisions of this Act and 
the Statutes:- 
  (a) the first Vice -Chancellor and pro -Vice-Chancellor, if any shall be 
appointed by the Chancellor and the said officer shall hold office for a 
term of three year; 
(b) the first Registrar and the first Finance Officer shall be appointed by the 
Chancellor who shall hold office for a term of three years; 
(c) the first Board of Governors shall hold office for a term not exceeding 
three years; 
(d) the first Board of management, the first Finance Committee and the first 
Academic Council shall be constituted by the Chancellor for a term of 
three years. 
 
Permanent 
endowment 
Fund 
41. (1) The University shall establish a permanent endowment fund of atleast rupees 
one crore, which may be increased suo motu but shall not be decreased. 
(2) The University shall have power to invest the permanent e ndowment fund in 
such manner as may be prescribed. 
(3) The University may transfer any amount from the general fund or the 
development fund to the permanent endowment fund. Excepting in the 
dissolution of the University, in no other circumstances can any monie s be 
transferred from corpus of the endowment fund for other purposes. 
(4) Not exceeding 75% of the incomes receive d from the corpus permanent 
endowment fund shall be used for the purposes of development works of the 
University. The remaining 25% shall be rein vested into the permanent 
endowment fund. 
 
General fund 42. (1) The University shall establish a general fund to which the following amount 
shall be credited, namely:- 
(a)  all fees which may be charged by the University; 
(b) all sums received from any other source;  
(c) all contributions made by the ICFAI Hyderabad; 
(d) all contributions/donations made in this behalf by any other person or 
body, which are not prohibited by any law for the time being in force. 
(2) The fund credited to the general fund shall be applied to meet all the recurring 
expenditure of the University. 
 
Development 
fund 
43. (1) The University shall also establish a development fund to which the following 
funds shall be credited, namely:- 
(a) development fees which may be charged from students; 
(b) all sums received from  any other source for the purposes of the 
development of the University 
(c) all contributions made by the ICFAI, Hyderabad; 
(d) all contributions/donations made in this behalf by any other person or 
body which are not prohibited by any law for the time being in fo rce; 
and  
(e) all incomes received from the permanent endowment fund. 
(2) The funds credited to the development fund from time to time shall be utilized 
for the development of the University. 
Maintenance of 
fund 
 
44. 
 
 
The funds established under sections 41, 42,  and 43 shall, subject to general 
supervision and control of the Board of Governors, be regulated and 
maintained in such manner as may be prescribed. 
  
Annual Report 45. (1) The annual report of the University shall be prepared under the direction of 
the Board of management and shall be submitted to the Board of Governors 
for its approval. 
(2) The Board of Governors shall consider the annual report in its meeting and 
may approve the same with or without modification. 
(3) A copy of the annual report duly approved by the Board of Governors shall be 
sent to Visitor and the State Government before 31 December following close 
of the financial year in 31 March each year. 
 
Account and 
Audit 
46. (1) The annual accounts and balance sheet of the University shall be prepared 
under the direction of the Board of management and all funds accruing to or 
received by the University from whatever source and all amount disburses or 
paid shall be entered in the accounts maintained by the University. 
(2) The annual accounts of the University shall be audited by an auditor, who is a 
member of the Institute of Chartered Accountants of India, every year. 
(3) A copy of the annual accounts and the balance sheet together with the audit 
report shall be submitted to the Board of Governors well before 31 Decemb er 
following close of the financial year in 31 March each year.  
(4) The annual accounts, the balance sheet and the audit report shall be 
considered by the Board of Governors at its meeting and the Board of 
Governors shall forward the same to the Visitor and t he State Government 
along with its observations thereon before the 31st December each year. 
(5) In the event of any material qualifications in the Report of the Auditors, the 
state Government may issue directions to the University, and such directions 
shall be binding on the University. 
 
Mode of proof 
of University 
record 
47. A copy of any receipt, application, notice, order, proceeding or resolution of 
any authority or committee of the University or other documents in possession 
of the University or any entry  in any register duly maintained by the 
university, if certified by the Registrar, shall be received as prima facie 
evidence of such receipt, application, notice, order, proceeding, resolution or 
document or the existence of entry in the register and shall  be admitted as 
evidence of the ma tters and transaction therein recorded where the original 
thereof would, if produced, have been admissible in evidence.  
 
Dissolution of 
University 
48. (1) If ICFAI, Hyderabad proposes dissolution of the ICFAI University in 
accordance with the law governing its constitution or incorporation, it shall 
give at least three months notice in writing to the State Government. 
(2) On identification of mismanagement, mal-administration, in-discipline, failure 
in the accomplishment of the objects of University and economic hardships in 
the management systems of University, the State Government would issue 
directions to the management system of University. If the direction are not 
followed within such time as may be prescribed, the right to t ake decision for 
winding up of the University would vest in the State Government. 
 
  (3) The manner of winding up of the University would be such as may be 
prescribed by the State Government in this behalf. Provided that no such 
action will be initiated witho ut affording a reasonable opportunity to show 
cause to the ICFAI. 
(4) On receipt of the notice referred to in sub -section (1), the State Government 
shall, in consultation with the council for Technical Education and U.G.C. 
make such arrangements for administra tion of the University from the 
proposed date of dissolution of the University by ICFAI, Hyderabad and until 
the last batch of students in regular courses of studies of the University 
complete their courses of studies in such manner as may be prescribed by  the 
statutes. 
 
Expenditure of 
the University 
during 
dissolution  
49. (1) The expenditure for administration of the University during the taking over 
period of its management under section 48 shall be out of the permanent 
endowment fund, the general fund or the development fund. 
(2) If the fund referred to sub -section (1), are not sufficient to meet the 
expenditure of the University during the taking over period of its 
management, such expenditure may be met by disposing of the properties or 
assets of the University, by the State Government. 
 
Removal of 
difficulties  
50. (1) If any difficulty arises in giving effect to the provisions of this Act, the State 
Government may, by a notification or order, make such provisions, not 
inconsistent with the provisions of this Ac t, as appear to it to be necessary or 
expedient, for removing the difficulty : 
 Provided that no notification orders under sub -section (1) shall be 
made after the expiration of a period of three years from the commencement 
of this Act. 
(2) Every order made und er sub -section (1) shall, as soon as may be after it is 
made, be laid before the State legislature. 
 
 
 
 
 
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