law: University Grants Commission Act 1956
  12.
  
  Functions of the Commission.
  It shall
  
  be the general duty of the Commission to take, in consultation with the
  
  Universities or other bodies concerned, all such steps as it may think fit for
  
  the promotion and co-ordination of University education and for the
  
  determination and maintenance of standards of teaching, examination and
  
  research in Universities, and 108 for the purpose of performing its functions
  
  under this Act, the Commission may- (a) inquire into the financial needs of
  
  Universities; (b) allocate and disburse, out of the Fund of the Commission,
  
  grants to Universities established or incorporated by or under a Central Act
  
  for the maintenance and development of such Universities or for any other
  
  general or specified purpose; (c) allocate and disburse, out of the Fund of the
  
  Commission, such grants to other Universities as it may deem 1*[necessary or
  
  appropriate for the development of such Universities or for the maintenance, or
  
  development, or both, of any specified activities of such Universities] or for
  
  any other general or specified purpose: that in making any grant to
  
  any such University the Commission shall give due consideration to the
  
  development of the University concerned, its financial needs, the standard
  
  attained by it and the national purposes which it may serve; 2*[(cc) allocate
  
  and disburse out of the Fund of the Commission, such grants to institutions
  
  deemed to be Universities in pursuance of a declaration made by the Central
  
  Government under section 3, as it may deem necessary, for one or more of the
  
  following purposes, namely:- (i) for maintenance in special cases, (ii) for
  
  development, (iii) for any other general or specified purpose;] 3*[(ccc)
  
  establish, in accordance with the regulations made under this Act, institutions
  
  for providing common facilities, services an programmes for a group of
  
  universities or for the universities in general and maintain such institutions
  
  or provide for their maintenance by allocating and disbursing out of the Fund
  
  of the Commission such grants as the Commission may deem necessary;] (d)
  
  recommend to any University the measures necessary for the improvement of
  
  University education and advise the University upon the action to be taken for
  
  the purpose of implementing such recommendation; (e) advise the Central
  
  Government or any State Government on the allocation of any grants to
  
  Universities for any general or specified purpose out of the Consolidated
  
  ---------------------------------------------------------------------- 1. Subs.
  
  by Act 33 of 1972, s. 5, for "necessary for the development of such
  
  Universities" (w.e.f. 17-6-1972). 2. Ins. by s. 5, ibid. 3. Ins. by Act 59
  
  of 1984, s. 2 (w.e.f. 1-10-1984). 109 Fund of India or the Consolidated Fund of
  
  the State, as the case may be. (f) advise any authority, if such advice is asked
  
  for, on the establishment of a new University or on proposals connected with
  
  the expansion of the activities of any University; (g) advise the Central
  
  Government or any State Government or University on any question which may be
  
  referred to the Commission by the Central government or the State Government or
  
  the University, as the case may be; (h) collect information on all such matters
  
  relating to University education in India and other countries as it thinks fit
  
  and make the same available to any University; (i) require a University to
  
  furnish it with such information as may be needed relating to the financial
  
  position of the University or the studies in the various branches of learning
  
  undertaken in that University, together with all the rules and regulations relating
  
  to the standards of teaching and examination in that University respecting each
  
  of such branches of learning; (j) perform such other functions as may be
  
  prescribed or as may be deemed necessary by the Commission for advancing the
  
  cause of higher education in India or as may be incidental or conducive to the
  
  discharge of the above functions. 12A. Regulation of fees and prohibition of
  
  donations in certain cases. 1*[12A. Regulation of fees and prohibition of
  
  donations in certain cases.
  (1) In
  
  this section,- (a) "affiliation", together with its grammatical
  
  variations, includes, in relation to a college, recognition of such college by,
  
  association of such college with, and admission of such college to the
  
  privileges of, a university; (b) "college" means any institution,
  
  whether known as such or by any other name which provides for a course of study
  
  for obtaining any qualification from a university and which, in accordance with
  
  the rules and regulations of such university, is recognised as competent to provide
  
  for such course of study and present students undergoing such course of study
  
  for the examination for the award of such qualification; (c)
  
  "prosecution", in relation to a course of study, includes promotion
  
  from one part or stage of the course of study to another part or stage of the
  
  course of study; (d) "qualification" means a degree or any other
  
  qualification awarded by a university; (e) "regulations" means
  
  regulations made under this Act; (f) "specified course of study"
  
  
  
  means a course of study in respect of which regulations of the nature mentioned
  
  in sub-section (2) have been made; (g) "student" includes a person
  
  seeking admission as a student; (h) "university" means a university
  
  or institution referred to in sub-section (1) of section 22.
  (2) Without
  
  prejudice to the generality of the provisions of section 12, if, having regard
  
  to- (a) the nature of any course of study for obtaining any qualification from
  
  any university; (b) the types of activities in which persons obtaining such
  
  qualification are likely to be engaged on the basis of such qualification; (c)
  
  the minimum standards which a person possessing such qualification should be
  
  able to maintain in his work relating to such activities and the consequent
  
  need for ensuring, so far as may be, that no candidate secures admission to
  
  such course of study by reason of economic power and thereby prevents a more
  
  meritorious candidate from securing admission to such course of study; and (d)
  
  all other relevant factors, the commission is satisfied that it is necessary so
  
  to do in the public interest, it may, after consultation with the university or
  
  universities concerned, specify by regulations the matters in respect of which
  
  fees may be charged and the scale of fees in accordance with which fees shall be
  
  charged in respect of those matters on and from such date as may be specified
  
  in the regulations in this behalf, by any college providing for such course of
  
  study from, or in relation to, any student in connection with his admission to,
  
  and prosecution of, such course of study: that different matters and
  
  different scales of fees may be so specified in relation to different
  
  universities or different classes of colleges or different areas.
  (3) Where
  
  regulations of the nature referred to in sub-section
  (2) have
  
  been made in relation to any course of study, no college providing for such
  
  course of study shall-- (a) levy or charge fees in respect of any matter other
  
  than a matter specified in such regulations; (b) levy or charge any fees in
  
  excess of the scale of fees specified in such regulations, or (c) accept,
  
  either directly or indirectly, any payment (otherwise than by way of fees) or
  
  any donation or gift (whether in cash or kind). from, or in relation to, any
  
  student in connection with his admission to, and prosecution of, such course of
  
  study.
  (4) If,
  
  after making, in relation to a college providing for a specified course of
  
  study, an inquiry in the manner provided by regulations and after giving such
  
  college a reasonable opportunity of being heard, the Commission is satisfied
  
  that such college has contravened the provisions of sub-section (3), the
  
  Commission may, with the previous approval of the Central Government, pass an
  
  order prohibiting such college from presenting any students then undergoing
  
  such course of study therein to any university for the award of the
  
  qualification concerned.
  (5) The
  
  Commission shall forward a copy of the order made by it under sub-section (4)
  
  to the university concerned, and on and from the date of receipt by the university
  
  of a copy of such order, the affiliation of such college to such university
  
  shall, in so far as it relates to the course of study specified in such order,
  
  stand terminated and on and from the date of termination of such affiliation
  
  and for a period of three years thereafter affiliation shall not be granted to
  
  such college in relation to such or similar course of study by that or any
  
  other university.
  (6) On
  
  the termination of the affiliation of any college under sub-section (5), the
  
  Commission shall take all such steps as it may consider appropriate for
  
  safeguarding the interests of the students concerned.
  (7) The
  
  provisions of this section and the regulations made for the purposes of this
  
  section shall have effect notwithstanding anything inconsistent therewith
  
  contained in any other law for the time being in force.] 12B. Prohibition
  
  regarding giving of any grant to a University not declared by the Commission
  
  fit to receive such grant. 2*[12B.] Prohibition regarding giving of any grant
  
  to a University not declared by the Commission fit to receive such grant. No
  
  grant shall be given by the Central Government, the Commission, or any other
  
  organisation receiving any funds from the Central Government, to a University
  
  which is established after the commencement of the University Grants Commission
  
  (Amendment) Act, 1972 (33 of 1972), unless the Commission has, after satisfying
  
  itself as to such matters as may be prescribed, declared such University to be
  
  fit for receiving such grant.]