Dattagupta has been given 21 days to explain his position before the Ministry contemplates further action against him, officials in the Union HRD Ministry said.
The President, who is the Visitor to the Central universities including Viswa Bharti, can invoke Section 16 of the General Clause Act to remove a VC.
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The three-member panel set up in February this year and headed by Justice Sakharam Singh Yadav, a former judge of Allahabad High Court, took cognisance of several enquiries and complaints against Dattagupta including alleged misappropriation of funds.
Dattagupta has been accused of making several illegal appointments including the appointment of the Controller of Examinations despite having no powers to do so and sanctioning key posts in violation of the Visva-Bharti Act.
He is also accused of drawing his salary from Visva-Bharati and pension from Jawaharlal Nehru University, which is a gross violation of the university's Act.
A section of teachers and students in the varsity had been demanding the removal of Dattagupta.
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