7Reserve funds

The University shall invest and keep invested in securities in which trust funds may be invested in accordance with the law for the time being in force relating to trusts in ¹[India] a sum of thirty lakhs of rupees as a permanent endowment to meet the recurring charges of the University other than charges in respect of fellowships, scholarships, prizes and rewards:

Provided that--

(1) any Government securities as defined in the Indian Securities Act, 1920 (10 of 1920), which may be held by the University shall, for the purposes of this section, be reckoned at their face value; and

(2) the aforesaid sum of thirty lakhs shall be reduced by such sums as, at the commencement of this Act, the ²[Central Government] shall, by order in writing, declareto be the total capitalised value, for the purpose of this section --

(a) of all permanent recurring grants of money which have been made either to the Muhammadan Anglo-Oriental College, Aligarh, the Muslim University Association or the Muslim University Foundation Committee, by any Ruler of a State in India; and

(b) of the total income accruing from immovable property (not being land or buildings, in the occupation and use of the said college) which by the operation of this Act has been transferred to the University