What is the role of AICTE in university(engg. dept). Is it true that a University may refuse to follow AICTE.?

The role of AICTE is very much confusing in University. Some university refuses to follow AICTE with the justification that "since we are university , we are not bound to follow AICTE". Under such cirstances teachers working in any Engineering Department of University are not provided the incentive (Two advance increment for those having M Tech degree at the time of joining as lecturer) that is mentioned in AICTE notification. Whereas the recruitment of teachers are done on the basis of AICTE guidlines.