Section 14 of The Banaras Hindu University Act, 1915
The University shall invest, and keep invested, in securities in which trust funds may be invested, in accordance with the provisions of the law relating to trusts in 1[India], a sum of 2[forty-five lakhs of rupees] as a permanent endowment to meet the recurring charges of the University other than charges in respect of scholarships, prizes and rewards: Provided that--
- (1)any Government securities, as defined by the Indian Securities Act, 3[1920] which may be held by the University shall, for the purpose of this section, be reckoned at their face-value, and
- (2)4[the aforesaid sum of forty-five lakhs shall be reduced by such sum as, at the commencement of the Banaras Hindu University (Amendment) Act, 1966 (52 of 1966)] the Central Government shall, by order in writing, declare to be the total capitalised value, for the purposes of this section--
- (a)of all permanent recurring grants of money which have been made to the University 5by[any Ruler of any Indian State] and
- (b)of the total income accruing from immovable property which has been transferred to the University.
Summary
- The university must invest and maintain a permanent endowment of forty-five lakhs of rupees.
- This money must be invested in securities approved for trust funds under Indian trust laws.
- The purpose of this permanent reserve is to cover the university's recurring charges, but it strictly cannot be used to pay for scholarships, prizes, or rewards.
- When counting the total, any Government securities held by the university are valued at their face-value.
- The required forty-five lakh sum is reduced by the capitalized value of permanent grants from Rulers of Indian States and the income from transferred immovable property, based on a written declaration by the Central Government.
Practical examples
FAQ
1. How much money is the university required to keep as a permanent reserve?
The law sets the required sum at forty-five lakhs of rupees, though this amount is subject to specific reductions.
2. Can the university use the income from this permanent reserve to fund student scholarships?
No, the reserve is strictly meant for recurring charges other than charges in respect of scholarships, prizes, and rewards.
3. How are government securities valued when adding up the reserve total?
Any Government securities held by the university are reckoned at their face-value.
4. Can the required reserve amount ever be lowered?
Yes, the Central Government can reduce it by declaring the capitalized value of certain recurring grants from Indian States and income from transferred immovable property.
Test yourself
Q1.Under Section 14 of The Banaras Hindu University Act, 1915, what is the base amount of the permanent endowment the university must keep invested?
Q2.According to Section 14 of The Banaras Hindu University Act, 1915, which of these expenses CANNOT be met using the permanent reserve?
Q3.How must Government securities be valued for the purpose of the permanent reserve under Section 14 of The Banaras Hindu University Act, 1915?
Q4.Under Section 14 of The Banaras Hindu University Act, 1915, who has the authority to declare the capitalized value of property income that reduces the required reserve sum?