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, a consultancy assignment, a teaching programme or a chaired professorship or a scholarship, 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 the purpose of the scheme:
         Provided that any money remaining unutilised under this clause shall be transferred to the endowment fund set up under section 27; and
         (b) the staff required to execute the same shall be recruited in accordance with the terms and conditions stipulated by the sponsoring organisation with prior approval of the Central Government:
         Provided that the principles laid down in the General Financial Rules, 2005 shall be followed for approval of sponsored schemes funded by the Central Government.