An act was passed by the previous Akali-BJP government last year to open a university on the premises of the Khalsa college, established in 1892.
MLAs from opposition SAD-BJP and the AAP were not present at the time the bills were passed as they had walked out of the Assembly during the Question Hour to protest the "denigration of Sikh principles" the day before when some members were forcibly evicted from the House.
On June 1, the Punjab government had promulgated an ordinance to repeal the Khalsa University Act, with a view to "protect the heritage character" of the Khalsa College.
The Cabinet had decided to ensure that the University's 300 students were accommodated in other colleges, after taking their choice into consideration, to ensure that their future was not jeopardised.
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Higher Education Minister Aruna Chaudhary moved the bill in the Assembly today, which was passed unanimously after a brief discussion in the House.
Chaudhary said the Khalsa university repeal ordinance was moved to save the heritage college.
She said, "The college had over a period of time become a significant icon of Khalsa heritage and the university established in 2016 was likely to shadow and damage its character and pristine glory."
The Khalsa University was established by the previous SAD-BJP alliance government despite huge criticism from the residents of Amritsar as well as the alumni of the college and intellectuals of the state.
Chief Minister Amarinder Singh had all along maintained that the move by the Khalsa College Society to destroy its rich heritage status by converting this prestigious institution into a university was "appalling".
The government had also felt that there was no need to set up another university in Amritsar which already has a few institutes of higher learning.