Education Act, 1983 Chapter 10

Every educational institution receiving grants out of State funds and other sources shall maintain accounts in such manner and containing such particulars as may be prescribed.

(1) The accounts of every educational institution receiving grants out of State funds shall be audited at the end of every academic year in such manner, after following such procedure and by such authority, officer or person as may be prescribed and different authorities, officers or persons may be prescribed for different classes of educational institutions.

(2) (a) The prescribed authority, officer or person shall have full access to the account books and other documents required to be maintained by the educational institution in respect of grants received by it out of State funds and shall send a copy of the report on the audit of the accounts under sub-section (1) to the competent authority who shall forward the report to the educational agency;

(b) The educational agency shall, within such time as may be prescribed, submit that report together with the comments of that agency to the competent authority.

(1) The State Government or the competent authority may suo motu or otherwise cause an inspection of or inquiry in respect of any educational institution, its accounts, its buildings, laboratories, libraries, workshops and equipments and also of the examinations, teaching and other work conducted or done by the institution to be made by such person or persons as it may direct or to cause an inquiry to be held in respect of examination, working and financial condition of such institution or of any other matter connected with the institution in accordance with such rules as may be prescribed.

(2) The Governing Council and the employees of the educational institution shall at all reasonable times be bound to afford to the aforesaid officer all such assistance and facilities as may be required for the purpose of such inspection or inquiry.

(3) The officer empowered under sub-section (1) shall have the following powers, namely:-

(a) he shall, at all reasonable times have access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the Governing Council and may summon any person in possession or responsible for the custody of such books, accounts, documents, securities, cash or other properties to produce the same at any place as he may direct;

(b) he may summon any person who, he has reason to believe has any knowledge as to the affairs of the educational institution to appear before him and may examine such person on oath.

(4) The State Government or the competent authority shall communicate to the educational agency the views of such authority with reference to the result of such inspection or inquiry and may after ascertaining the opinion of the educational agency thereon advise that agency upon the action to be taken.

(5) The educational agency shall report to the State Government or the competent authority as the case may be the action, if any which is proposed to be taken or has been taken upon the results of such inspection or inquiry. Such report shall be furnished within such time as the State Government or the competent authority may direct.

(6) Where the educational agency does not, within a reasonable time, take action to the satisfaction of the State Government or the competent authority, they may, after considering any explanation furnished or representation made by the educational agency, issue such directions as may deem fit, and the educational agency and the head of the institution shall comply with such directions and shall be responsible for the implementation of every such direction.

Every educational agency shall within such time or within such extended time as may be fixed by the competent authority in this behalf, furnish to the competent authority such returns, statistics and other information as the competent authority may from time to time, require.