 bill no 186 of 2018 the national institute of design (amendment) bill, 2018 a billto amend the national institute of design act, 2014be it enacted by parliament in the sixty-ninth year of the republic of india as follows:—1 (1) this act may be called the national institute of design (amendment) act, 2018short title and commencement5(2) it shall come into force on such date as the central government may, by notificationin the official gazette, appoint and different dates may be appointed for different provisions of this actamendment of long title18 of 20142 in the national institute of design act, 2014 (hereinafter referred to as the principalact), in the long title, for the words "the institution known as the national institute of design, ahmedabad, to be an institution of national importance", the words "certain institutions of design to be institutions of national importance" shall be substituted10amendment of section 13 in section 1 of the principal act, in sub-section (1), for the word "institute", the word"institutes" shall be substituted4 for section 2 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 2"2 whereas the objects of the institutions mentioned in the schedule, are such as to make them institutions of national importance, it is hereby declared that each such institute is an institution of national importance"5declaration of certain institutions as institutions of national importance5 in section 3 of the principal act,—amendment of section 3(i) for clause (d), the following clause shall be substituted, namely:—'(d) "director", in relation to any institute, means the director of such institute as appointed under section 18;';10(ii) for clause (e), the following clause shall be substituted, namely:—'(e) "fund", in relation to any institute, means the fund of such institute as maintained under section 23;'; (iii) for clause (f), the following clause shall be substituted, namely:—'(f) "governing council", in relation to any institute, means the governing council of such institute as constituted under section 11;';15(iv) for clause (g), the following clause shall be substituted, namely:—'(g) "institute" means any of the institutions mentioned in column (5) of the schedule;'; (v) for clause (h), the following clause shall be substituted, namely:—20'(h) "institute campus" means the campus of an institute as may be established by such institute at any place within india or outside india;'; (vi) for clause (k), the following clause shall be substituted, namely:—'(k) "registrar", in relation to any institute, means the registrar of such institute as appointed under section 20;';25(vii) after clause (k), the following clause shall be inserted, namely:—'(ka) "schedule" means the schedule annexed to this act;';(viii) for clause (l), the following clause shall be substituted, namely:—'(l) "senate", in relation to any institute, means the senate of such institute;';30(ix) for clause (m), the following clause shall be substituted, namely:—'(m) "society" means any of the societies registered under the societies registration act, 1860, and mentioned in column (3) of the schedule;';21 of 1860(x) for clause (n), the following clause shall be substituted, namely:—35'(n) "statutes" and "ordinances", in relation to any institute, means the statutes and the ordinances of such institute made under this act'6 for section 4 of the principal act, the following section shall be substituted, namely:—substitution of new section for section 4 incorporation of institute"4 (1) each institute shall be a body corporate by the same name as mentioned in column (5) of the schedule40(2) each institute shall have perpetual succession and a common seal, with power, subject to the provisions of this act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued(3) the body corporate constituting each institute shall consist of a chairperson, director and other members of the governing council for the time being, of the institute5(4) any institute may establish an institute campus at such place within india or outside india, as it may deem fit:provided that each campus of the national institute of design, ahmedabad, established before the commencement of this act, at bengaluru in the state of karnataka and at gandhinagar in the state of gujarat, shall be deemed to be the institute campus thereof10explanation—the reference in this sub-section to the commencement of this act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 2014 " 7 in section 5 of the principal act,—amendment of section 5(i) for clause (a), the following clause shall be substituted, namely:—15"(a) any reference to the society mentioned in column (3) of the schedule in any law or in any contract or other instrument shall be deemed as a reference to the corresponding institute mentioned in column (5) thereof;"; (ii) in clause (e), the words "located at bengaluru in the state of karnataka and at gandhinagar in the state of gujarat," shall be omitted;20(iii) the following explanations shall be inserted, namely:—"explanation i—the reference in this section to the commencement of this act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 201425explanation ii—the reference in this section to the commencement of this act shall be construed in relation to every institute (other than the national institute of design, ahmedabad) as the reference to the date on which the provisions of the national institute of design (amendment) act, 2018 comes into force"30amendment of section 68 in section 6 of the principal act, in sub-section (1), for the words "the institute shall", the words "each institute shall" shall be substitutedamendment of section 79 in section 7 of the principal act, in sub-section (1), for the words "the institute", the words "every institute" shall be substitutedamendment of section 810 in section 8 of the principal act, for the words "teaching at the institute", the words "teaching at each of the institutes" shall be substituted35amendment of section 911 in section 9 of the principal act, in sub-section (1), for the words "the institute", the words "each of the institutes" shall be substitutedamendment of section 104012 in section 10 of the principal act, for the words "the following shall be the authorities of the institute", the words "each institute shall have the following authorities" shall be substitutedamendment of section 1113 in section 11 of the principal act, for the words "the governing council shall consist of", the words "the governing council of every institute shall consist of" shall be substitutedamendment of section 1514 in section 15 of the principal act, for the words "the senate of the institute", the words "the senate of each institute" shall be substituted45amendment of section 1615 in section 16 of the principal act, for the words "the senate of the institute", thewords "the senate of an institute" shall be substitutedamendment of section 1816 in section 18 of the principal act, in sub-section (1), for the words "the institute",the words "each of the institutes" shall be substituted5amendment of section 2017 in section 20 of the principal act, in sub-section (1), for the words "registrar of theinstitute", the words "registrar of each institute" shall be substitutedamendment of section 2218 in section 22 of the principal act, for the words "enabling the institute", the words"enabling an institute" shall be substitutedamendment of section 231019 in section 23 of the principal act, in sub-section (1), for the words "the institute",the words "every institute" shall be substitutedamendment of section 2420 in section 24 of the principal act, for the words "the institute", the words "anyinstitute" shall be substitutedamendment of section 2521 in section 25 of the principal act, in sub-section (1), for the words "the institute",the words "every institute" shall be substituted15amendment of section 2622 in section 26 of the principal act, in sub-section (1), for the words "the institute",the words "every institute" shall be substituted23 in section 27 of the principal act,—amendment of section 27(i) for the words "the institute", the words "an institute" shall be substituted;20(ii) in clause (a), for the words "senior designer", at both the places where theyoccur, the words "principal designer" shall be substitutedamendment of section 2924 in section 29 of the principal act, in sub-section (1), for the words "the institute",the words "each institute" shall be substitutedamendment of section 3025 in section 30 of the principal act, for the words "ordinances of the institute", thewords "ordinances of each institute" shall be substituted25amendment of section 3226 in section 32 of the principal act, in sub-section (1), for the words "between theinstitute", the words "between an institute" shall be substitutedamendment of section 3327 in section 33 of the principal act, for the words "the institute", the words "anyinstitute" shall be substitutedamendment of section 3428 in section 34 of the principal act, for the words "the institute receives", the words"an institute receives" shall be substituted30amendment of section 3529 in section 35 of the principal act, for the words "the institute", the words "everyinstitute" shall be substitutedamendment of section 3630 in section 36 of the principal act, for the words "to the institute", the words "toany institute" shall be substituted35amendment of section 3731 in section 37 of the principal act, for the words "the institute", the words "everyinstitute" shall be substituted32 in section 39 of the principal act, —amendment of section 39(i) in clause (a), for the words "governing council of the institute", the words"governing council of an institute" shall be substituted;40(ii) in clause (c), the words "located at bengaluru or gandhinagar, as the case may be" shall be omitted;(iii) the following explanations shall be inserted, namely:—"explanation i—the reference in this section to the commencement of this act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 20145explanation ii—the reference in this section to the commencement ofthis act shall be construed in relation to every institute (other than the national institute of design, ahmedabad) as the reference to the date on which the provisions of the national institute of design (amendment) act, 2018 comes into force"10amendment of section 4033 in section 40 of the principal act, after sub-section (3), the following explanations shall be inserted, namely:—"explanation i—the reference in this section to the commencement of this act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 201415explanation ii—the reference in this section to the commencement of this actshall be construed in relation to every institute (other than the national institute of design, ahmedabad) as the reference to the date on which the provisions of the national institute of design (amendment) act, 2018 comes into force"insertion of a new schedule2034 after section 41 of the principal act, the following schedule shall be inserted, namely:——————— "the schedule [see sections 2, 3(g), (ka), (m), 4 (1) and 5 (a)]| sl                                    | name of the state     | name of the society                     | location   | name of the institutions   ||----------------------------------------|-----------------------|-----------------------------------------|------------|----------------------------|| no                                    | under this act        |                                         |            |                            || (1)                                    |                       | (2)                                     | (3)        | (4)                        || ahmedabad                              | national institute of |                                         |            |                            || design, ahmedabad                      |                       |                                         |            |                            || 1                                     | gujarat               | national institute of design,           |            |                            || ahmedabad, a society registered        |                       |                                         |            |                            || under the societies registration act,  |                       |                                         |            |                            || 1860                                  |                       |                                         |            |                            || bhopal                                 | national institute of |                                         |            |                            || design, bhopal                         |                       |                                         |            |                            || 2                                     | madhya pradesh        | national institute of design, bhopal,   |            |                            || a society registered under the         |                       |                                         |            |                            || societies registration act, 1860      |                       |                                         |            |                            || jorhat                                 | national institute of |                                         |            |                            || design, jorhat                         |                       |                                         |            |                            || 3                                     | assam                 | national institute of design, jorhat, a |            |                            || society registered under the societies |                       |                                         |            |                            || registration act, 1860                |                       |                                         |            |                            || kurukshetra                            | national institute of |                                         |            |                            || design, kurukshetra                    |                       |                                         |            |                            || 4                                     | haryana               | national institute of design,           |            |                            || kurukshetra, a society registered      |                       |                                         |            |                            || under the societies  registration act, |                       |                                         |            |                            || 1860                                  |                       |                                         |            |                            || amaravati                              | national institute of |                                         |            |                            || design, amaravati"                    |                       |                                         |            |                            || 5                                     | andhra pradesh        | national institute of design,           |            |                            || amaravati, a society registered under  |                       |                                         |            |                            || the societies  registration act, 1860 |                       |                                         |            |                            | statement of objects and reasonsthe national institute of design act, 2014 was enacted to declare the national institute of design, ahmedabad to be an institution of national importance for the promotion of quality and excellence in education, research and training in all disciplines relating to design2 in pursuance of the national design policy and  to raise the design education to global standard of excellence in all regions of india, the government of india set up four new national institutes of design at amaravati in the state  of andhra pradesh, bhopal in the state  of  madhya pradesh,  jorhat in the state  of  assam and kurukshetra in the state of haryana, as societies under the societies registration act, 1860 presently, the said institutes do not have the authority to grant degree, diploma and other academic distinctions therefore, a need has been felt to give them statutory status so as to ensure the maintenance of similar standards and quality of education in all areas or disciplines relating to design, as the national institute of design, ahmedabad  it is proposed to declare the aforesaid institutes as institutions of national importance and to confer power on them to grant degree, diploma and other academic distinctions3 it is, accordingly, proposed to amend the national institute of design act, 2014, inter alia, to provide for the following:—(a) to amend section 2 of the said act, so as to declare the national institutes of design at amaravati in the state of andhra pradesh, bhopal in the state of  madhya pradesh, jorhat in the state  of  assam and kurukshetra in the state of haryana, as institutions of national importance;(b) to substitute section 4 so as to provide for incorporation of each of the aforesaid institutes;(c) to make consequential amendments to various sections of the said act; (d) to amend section 27 of the said act so as to designate the post of principal designer instead of the senior designer, as equivalent to a professor 4 the bill seeks to achieve the above objectivesnew delhi;suresh  prabhuthe 16th november, 2018 notes on clausesclause 2—this clause seeks to amend the long title of the act so as to substitute the words "the national institute of design, ahmedabad" with the words "certain institutions of design" in view of proposed incorporation of new institutions such as national institutes of design at amaravati in the state  of andhra pradesh, bhopal in the state of madhya pradesh,  jorhat in the state of assam and kurukshetra in the state of haryanaclause 3—this clause seeks to amend section 1 of the act to provide for substitution of the word "institute" with the word "institutes" which are consequential in natureclause 4—this clause seeks to substitute section 2 of the act to  provide for declaration of the institutions mentioned in the schedule, as institutions of national importanceclause 5—this clause seeks to amend section 3 of the act to amend the definitions of director, fund, governing council, institute, institute campus, registrar, senate, society, statutes and ordinances and to insert a new definition of scheduleclause 6—this clause seeks to substitute section 4 of the act with a new section to provide for the incorporation of each of the institutes mentioned in the schedule it further provides that each of the institutes may establish institute campuses within or outside indiaclause 7—this clause seeks to amend section 5 of the act to provide that any reference to the society mentioned in the schedule shall be deemed as a reference to the corresponding institute mentioned therein it further provides that commencement of the act shall, in relation to national institute of design, ahmedabad, be deemed to be 16th day of september, 2014 and in relation to the other institutes, be deemed to be the date on which the national institute of design (amendment) act, 2018 comes into forceclause 8—this clause seeks to amend section 6 of the act so as to substitute the words  "the institute"  with the words "each institute"clause 9— this clause seeks to amend section 7 of the act so as to substitute the words  "the institute" with the words "every institute"clause 10—this clause seeks to amend section 8 of the act so as to substitute the words  "teaching at the institute" with the words "teaching at each of the institutes"clause 11—this clause seeks to amend section 9 of the act so as to substitute the words "the institute" with the words "each of the institutes"clause 12—this clause seeks to amend section 10 of the act so as to substitute the words  "the following shall be the authorities of the institute" with  the words "each institute shall have the following authorities"clause 13—this clause seeks to amend section 11 of the act so as to substitute the words  "the governing council shall consist of " with the words "the governing council of every institute shall consist of"clause 14—this clause seeks to amend section 15 of the act so as to substitute the words  "the senate of the institute" with the words "the senate of each institute"clause 15—this clause seeks to amend section 16 of the act so as to substitute the words "the senate of the institute" with the words "the senate of an institute"clause 16—this clause seeks to amend section 18 of the act so as to substitute the words  "the institute" with the words "each of the  institutes"clause 17—this clause seeks to amend section 20 of the act so as to substitute the words  "registrar of the institute" with the words "registrar of each institute"clause 18—this clause seeks to amend section 22 of the act so as to substitute the words "enabling the institute" with the words "enabling an institute"clause 19—this clause seeks to amend section 23 of the act so as to substitute the words "the institute" with the words "every institute"clause 20—this clause seeks to amend section 24 of the act so as to substitute the words "the institute " with the words  "any institute"clause 21—this clause seeks to amend section 25 of the act so as to substitute the words "the institute" with the words "every  institute"clause 22—this clause seeks to amend section 26 of the act so as to substitute the words "the institute" with the words "every institute"clause 23—this clause seeks to amend section 27 of the act so as to substitute the words "the institute" with the words "an institute" and the words "senior designer" with"principal designer"clause 24—this clause seeks to amend section 29 of the act so as to substitute the words "the institute" with the words "each institute"clause 25—this clause seeks to amend section 30 of the act so as to substitute the words "ordinances of the institute" with the words "ordinances of  each institute"clause 26—this clause seeks to amend section 32 of the act so as to substitute the words "between the institute " with the words "between an institute"clause 27—this clause seeks to amend section 33 of the act so as to substitute the words "the institute" with the words "any institute"clause 28—this clause seeks to amend section 34 of the act so as to substitute the words "the institute receives" with the words "an institute receives"clause 29—this clause seeks to amend section 35 of the act so as to substitute the words  "the institute" with the words "every institute"clause 30—this clause seeks to  amend section 36 of the act so as to substitute the words  "to the institute" with the words "to any institute"clause 31—this clause seeks to amend section 37 of the act so as to substitute the words   "the institute" with the words "every institute"clause 32—this clause seeks to make amendments to section 39 of the act so as to substitute the words "governing council of the institute" with the words "governing council of an institute" and to omit the words "located at bengaluru or gandhinagar, as the case may be"  it further seeks  to insert  two explanations  so as to provide that  for the purposes of the said section, the commencement of the act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 2014 and in relation to every institute (other than the national institute of design, ahmedabad), the date on which the provisions of the national institute of design (amendment) act, 2018 comes into forceclause 33—this clause seeks to insert  two explanations in section 40 of the act so as to  provide that  for the purposes of the said section, the commencement of the act shall, in relation to the national institute of design, ahmedabad, be deemed to be the 16th day of september, 2014 and in relation to every institute (other than the national institute of design, ahmedabad), the date on which the provisions of the national institute of design (amendment) act, 2018 comes into forceclause 34—this clause seeks to insert a schedule after section 41 of the act containing the names and particulars of the national institutes of design financial memorandumclause 4 of the bill seeks to amend section 2 of the national institute of design act,2014 so as to declare the national institutes of design at amaravati in the state of andhra pradesh, bhopal in the state of  madhya pradesh, jorhat  in the state of assam and kurukshetra in the state of haryana, as institutions of national importance and clause 6 seeks to substitute new section for section 4, so as to provide for incorporation of each of the said institutes2 it is estimated that there would be an expenditure of approximately 434 crore rupees for the establishment of these institutes  accordingly, a sum of 434 crore rupees was sanctioned during the twelfth plan the non-recurring expenditure is estimated to be 33672 crore rupees and recurring expenditure is estimated to be 9728 crore rupees the expenditure is met through budgetary provision of the department of industrial policy and promotion after the institutes become fully operational and start generating revenues through fees, consultancy income, etc, dependence on government grants for recurring expenditure will gradually reduce3 the bill does not involve any other expenditure of recurring or non-recurring nature from the consolidated fund of india memorandum regarding delegated legislationclauses 24 of the bill seeks to amend section 29 of the national institute of design act,2014, so as to confer power on the institutes of design at amaravati in the state of andhra pradesh, bhopal in the state of  madhya pradesh, jorhat in the state of assam and kurukshetra in the state of haryana to frame statutes and clause 25 seeks to amend section 30 of the said act, so as to confer power these institutes to frame ordinances2 the matters in respect of which the statutes or ordinances may be made are matters of procedure and administrative details, and it is not practicable to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character annexure extracts from the national institute of design act, 2014 (18 of 2014)an act to declare the institution known as the national institute of design, ahmedabad, to be an institution of national importance for the promotion of quality and excellence in education, research and training in all disciplines relating to design and for matters connected therewith or incidental thereto     chapter i preliminary1 (1) this act may be called the national institute of design act, 2014short title and commencement    2 whereas the objects of the institution known as the national institute of design, ahmedabad, are such as to make it the institution of national importance, it is hereby declared that the national institute of design, ahmedabad is an institution of national importancedeclaration of national institute of design, ahmedabad, as an institution of national importance definitions3 in this act, unless the context otherwise requires,—    (d) "director" means director of the institute, as appointed under section 18; (e) "fund" means the fund of the institute maintained under section 23; (f) "governing council" means the governing council of the institute, as constituted under section 11;(g) "institute" means the national institute of design, ahmedabad, incorporated under section 4;(h) "institute campus" means the campus of the institute located at bengaluru in the state of karnataka and gandhinagar in the state of gujarat, or such other campus as may be established by the institute at any place within india or outside india;    (k) "registrar" means registrar of the institute; (l) "senate" means the senate of the institute;21 of 1860(m) "society" means the national institute of design, ahmedabad, registered as a society under the societies registration act, 1860;(n) "statutes" and "ordinances" mean the statutes and the ordinances of the institute made under this act chapter ii the instituteincorporation of the institute4 (1) the national institute of design, ahmedabad, shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and shall, by that name, sue or be sued(2) the body corporate constituting the institute shall consist of a chairperson, a director and other members of the governing council for the time being of the institute(3) the headquarters of the institute shall be in the district of ahmedabad in the state of gujarat(4) the institute may establish an institute campus at such other place within india or outside india, as it may deem fit:provided that each campus of the national institute of design, ahmedabad, established before the commencement of this act, at bengaluru in the state of karnataka and gandhinagar in the state of gujarat, shall be deemed to be the institute campus5 on and from the date of commencement of this act,—effect of incorporation of the institute(a) any reference to the society in any law (other than this act) or in any contract or other instrument shall be deemed as a reference to the institute incorporated under this act; [10] m c(e) every person employed by the society, immediately before such commencement, shall hold his office or service in the institute including the institute campuses, located at bengaluru in the state of karnataka and at gandhinagar in the state of gujarat, by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same, if this act had not been enacted, and shall continue to be so, unless and until his employment is terminated or until such tenure, remuneration, terms and conditions are duly altered by the statutes:provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the institute of compensation equivalent to three months' remuneration in the case of permanent employee and one month's remuneration in the case of other employeepowers of institute6 (1) subject to the provisions of this act, the institute shall exercise the following powers and perform the following duties, namely:— [10] m cinstitute be open to all races, creeds and classes7 (1) the institute shall be open to persons of either sex and of whatever race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever [10] m cteaching at institute8 all teaching at the institute and the institute campuses shall be conducted by or inthe name of the institute in accordance with the statutes and the ordinances made in this behalfvisitor9 (1) the president of india shall be the visitor of the institute    10 the following shall be the authorities of the institute, namely:—authorities of institute(a) the governing council, (b) a senate, and (c) such other authorities as may be declared by the statutes to be the authorities of the institute 11 the governing council shall consist of the following members, namely:—governing council(a) a chairperson, who shall be an eminent academician, scientist or technologist or professional or industrialist, to be nominated by the visitor;(b) the director, ex officio;(c) the financial adviser in the ministry or department of the government of india dealing with the national institute of design, ex officio;(d) the joint secretary, in the ministry or department in the government of india dealing with the national institute of design, ex officio;(e) one representative of the ministry or department of the government of india not below the rank of joint secretary dealing with higher education, to be nominated by the secretary of that ministry or department, ex officio;(f) one representative of the ministry or department of the government of india not below the rank of joint secretary dealing with information technology to be nominated by the secretary of that ministry or department, ex officio;(g) one representative from the state in which the institute campus is located, to be nominated by that state government;(h) five professionals, one each from the fields of architecture, engineering, fine arts, mass media and technology, to be nominated by the central government;(i) an outstanding designer, to be nominated by the visitor in consultation with the central government;(j) a management expert, to be nominated by the chairperson; (k) a representative of the micro, small and medium enterprises, to be nominated by the central government;(l) three persons to be nominated by the senate from amongst persons recommended by companies, firms or individuals who have provided financial assistance or contribution to the institute:provided that the threshold of financial assistance or contribution and other requirements to qualify for such nomination shall be such as may be provided for in the statutes; and(m) dean of each institute campus, ex officio     senate15 the senate of the institute shall consist of the following persons, namely:—(a) the director, ex officio, who shall be the chairman of the senate; (b) dean of each institute campus, ex officio; (c) senior professors of the institute and of the institute campuses; (d) three persons, not being employees of the institute, to be nominated by the chairperson in consultation with the director, from amongst educationists of repute, one each from the fields of science, engineering and humanities and at least one of them shall be a woman;(e) one alumnus of the institute to be nominated by the chairperson in consultation with the director; and(f) such other members of the staff as may be laid down in the statutesfunctions of senate16 subject to the provisions of this act, the statutes and the ordinances, the senateof the institute shall have the control and general regulation, and be responsible for the maintenance of standards of instruction, education and examination in the institute and shall exercise such other powers and perform such other duties as may be conferred or imposed upon it by the statutes    director18 (1) the director of the institute shall be appointed by the central government fora tenure of five years in such manner and on such terms and conditions of service as may be prescribed    registrar20 (1) the registrar of the institute shall be appointed on such terms and conditionsas may be laid down by the statutes and shall be the custodian of records, the common seal, the funds of the institute and such other property of the institute as the governing council shall commit to his charge    grants by central government22 for the purpose of enabling the institute to discharge its functions efficientlyunder this act, the central government may, after due appropriation made by parliament by law in this behalf, pay to the institute in each financial year such sums of money and in such manner as it may think fit23 (1) the institute shall maintain a fund to which shall be credited—fund of institute(a) all moneys provided by the central government; (b) all fees and other charges received by the institute; (c) all moneys received by the institute by way of grants, gifts, donations, benefactions, bequests or transfers; and(d) all moneys received by the institute in any other manner or from any other source|     |     |     |     |    ||------|------|------|------|-----|24 notwithstanding anything contained in section 23, the central government may direct the institute to—setting up of endowment fund(a) set up an endowment fund and any other fund for specified purpose; and (b) transfer money from its fund to endowment fund or any other fundaccounts and audit25 (1) the institute shall maintain proper accounts and other relevant records andprepare an annual statement of accounts, including the balance sheet, in such form as may be prescribed, in accordance with such general directions as may be issued by the central government in consultation with the comptroller and auditor- general of india    pension and provident fund26 (1) the institute shall constitute, for the benefit of its employees, including thedirector, such pension, insurance and provident funds as it may deem fit, in such manner and subject to such conditions as may be laid down in the statutes    appointment of staff27 all appointments of the staff of the institute, except that of the director, shall bemade in accordance with the procedure laid down in the statutes by—(a) the governing council, if the appointment is made on the academic staff in the post of senior designer or professor or above or if the appointment is made on the non-academic staff in any cadre, the maximum of the pay-scale for which is the same or higher than that of senior designer or professor; and|     |     |     |     |    ||------|------|------|------|-----|statutes how to be made29 (1) the first statutes of the institute shall be framed by the governing council with the previous approval of the visitor and a copy of the same shall be laid as soon as may be before each house of parliament    ordinances30 subject to the provisions of this act and the statutes, the ordinances of the institute may provide for all or any of the following matters, namely:—(a) admission of the students to the institute including institute campus; (b) reservation in admission to various courses or programmes of the institute for the scheduled castes, the scheduled tribes and other backward classes;(c) courses of study to be laid down for all degrees, diplomas and certificates of the institute;(d) conditions under which students shall be admitted to the degree, diploma and certificate courses and to the examinations of the institute and award of degrees, diplomas and certificates;(e) conditions for award of fellowships, scholarships, exhibitions, medals and prizes;(f) conditions and mode of appointment and duties of examining body, examiners and moderators;(g) conduct of examinations; (h) maintenance of discipline among the students of the institute; and (i) any other matter which by this act or the statutes is to be or may be provided for by the ordinances     arbitral tribunal32 (1) any dispute arising out of a contract between the institute and any of its employees shall, at the request of the employee concerned or at the instance of the institute, be referred to an arbitral tribunal consisting of one member appointed by the institute, one member nominated by the employee and an umpire appointed by the visitor     chapter iii miscellaneous33 no act of the institute or governing council or senate or any other authority, set up under this act or the statutes, shall be invalid merely by reason of—(a) any vacancy in, or defect in the constitution thereof; oracts and proceedings not to be invalidated by vacancies, etc(b) any defect in the election, nomination or appointment of a person acting as a member thereof; or(c) any irregularity in its procedure not affecting the merits of the casesponsored schemes34 notwithstanding anything contained in this act, whenever the institute receives funds from any government, the university grants commission or any other agency including industry sponsoring a research scheme or a consultancy assignment or a teaching programme or a chaired professorship or a scholarship, etc, to be executed or endowed at the institute,—(a) the amount received shall be kept by the institute separately from the fund of the institute and utilised only for that purpose; and(b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisations:provided that any money remaining unutilised shall be transferred to the endowment fund set up under section 24 of this actpower of institute to grant degrees, etc35 the institute shall have the power to grant degrees, diplomas, certificates and other academic distinctions under this act, which shall be equivalent to such corresponding degrees, diplomas, certificates and other academic distinctions granted by any university or institute established or incorporated under any other law for the time being in force36 the central government may give such directions as it may deem necessary to the institute for effective administration of this act and the institute shall comply with such directionspowers of central government to issue directions22 of 200537 the provisions of the right to information act, 2005 shall apply to the institute, as if it were a public authority as defined in clause (h) of section 2 of the right to information act, 2005    institute to be public authority under right to information act, 200539 notwithstanding anything contained in this act—transitional provisions(a) the governing council of the institute functioning as such, immediately before the commencement of this act, shall continue to so function until a new governing council is constituted for the institute under this act, but on the constitution of a new governing council under this act, the members of the governing council holding office before such constitution shall cease to hold office;     (c) until the first statutes and ordinances are made under this act, the rules and regulations, instructions, guidelines and bye-laws of the society, in force immediately before the commencement of this act, shall continue to apply to the institute and institute campuses located at bengaluru or gandhinagar, as the case may be, in so far as they are not inconsistent with the provisions of this act 40 (1)    statutes and ordinances to be ;ublished in the official gazette and to be laid before parliament(3) the power to make statutes or ordinances shall include the power to give retrospective effect from a date not earlier than the date of commencement of this act to statues or ordinances or any of them but no retrospective effect shall be given to any statute or ordinance so as to prejudicially affect the interests of any person to whom such statutes or ordinances may be applicable     lok  sabha———— a billto amend the national institute of design act, 2014————(shri suresh prabhu, minister of commerce & industry and civil aviation)mgipmrnd—2412ls(s3)—13-12-2018