THE KARNATAKA STATE OPEN UNIVERSITY (AMENDMENT) ACT, 2020
KARNATAKA ACT NO. 48 OF 2020
(First Published in the Karnataka Gazette Extra-ordinary on the 20th day of October 2020)
(Received the assent of the Governor on the 19th day of October 2020)
An Act further to amend the Karnataka State Open University Act, 1992.
Whereas it is expedient further to amend the Karnataka State Open University Act, 1992 (Karnataka Act 46 of 1994) for the purposes hereinafter appearing:
Be it enacted by the Karnataka State Legislature in the seventy first year of the Republic of India as follows:-
1. Short title and Commencement.- (1) This Act may be called the Karnataka State Open University (Amendment) Act, 2020.
(2) Section 1 and sub-section (1) of section 6 shall come into force at once and remaining provisions of this Act shall be deemed to have come into force from the 1st day of June, 1996.
2. Amendment of section 2.- In the Karnataka State Open University Act, 1992 (Karnataka Act 46 of 1994) (hereinafter referred to as the Principal Act) in section 2,-
(1) after clause (a), the following shall be inserted, namely:-
"(aa) "Assessment Year" means the year following the year in which the income of a financial year is assessed or taxed” ;
(2) after clause (f) the following shall be inserted, namely:-
"(fa) "Financial Year" means a period of twelve consecutive months commencing on 1st day of April every year”;
(fb) "Person having a substantial interest in a concern" shall have the same meaning as assigned to this expression in Explanation 3 below sub-section (9) of section 13 of the Income Tax Act, 1961 (hereinafter referred to as the Income Tax Act);
"(fc) "Previous Year" means the financial year immediately preceding the assessment year;"
3. Amendment of section 3.- In section 3 of the Principal Act, after sub-section (5), the following shall be inserted, namely:-
"(5A) The establishment of the University shall be a non-profit making institution and the University shall not transfer directly or indirectly of the whole or any part of income or of any movable or immovable property of the University to any person or to give any person any right to assume power directly or indirectly over the
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whole or any part of the income or of any movable or immovable property of the University."
4. Amendment of section 5.- In section 5 of the Principal Act, after sub-section (2), the following shall be inserted, namely:-
"(3) No part of the income of the University shall enure directly or indirectly for the benefit of any Officer or Authority of the University or any other person who has made a substantial contribution to it or of any relative of such Officer or Authority or person or of any concern in which such Officer or Authority or person or any relative of such Officer or Authority or person has a substantial interest."
5. Amendment of section 23.- In section 23 of the Principal Act, after sub-section (6), the following shall be inserted, namely:-
"(7) Notwithstanding anything contained in this section, the Board of Management shall not to make or adopt any new statute or amend, modify or repeal any statutes affecting the objectives of the University"
6. Amendment of section 27.- In section 27 of the Principal Act,-
(1) in sub-section (1), for the words, “Controller of State Accounts” the words “Principal Director, Karnataka State Audit and Accounts Department” shall be substituted.
(2) after sub-section (5), the following shall be inserted, namely:-
"(6) The University shall, where its total income as computed under the Income Tax Act without giving effect to the provisions of sections 11 and 12 of that Act exceeds the maximum amount which is not chargeable to income-tax in any previous year, get its accounts for that year audited by an accountant as defined in the Explanation to sub-section (2) of section 288 of the Income Tax Act and furnish along with its return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed, in accordance with clauses (b) and (ba) of sub-section (1) of section 12A of the Income Tax Act.
(7) The University shall utilize its income and movable and immovable property only for the furtherance of its objects, shall not invest or deposit any income accumulated or set apart for application to charitable purposes in India in any form or mode other than those specified in sub-section (3) of section 11 of the Income Tax Act and shall not distribute its income or property to any person by way of profit, dividend and interest or in any other manner."
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7. Insertion of new section 38A.- After section 38 of the Principal Act, the following shall be inserted, namely:-
"38A. Dissolution or winding up of the university.- In the event of dissolution or winding up of the University, the assets remaining as on the date of dissolution shall under no circumstances be distributed among the officers of the university or members of the Board of Management or Finance Committee or among any person having substantial interest or their relative, but the same shall be transferred to another University whose objects are similar to that of this University."
8. Amendment of First schedule.- In the first schedule to the Principal Act, under the heading “The objects of the University” in clause 1, after item (j) the following shall be inserted, namely:-
“(k) undertake necessary or expedient action to pursue and promote the objectives of the university as a non-profit organization.”
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