VTU Grace Marks Rule / Policy is explained here:
01: A maximum of 2% of University Examination marks i.e. 02 grace marks may be awarded if due to this the candidate passes in the subject / head of passing.
02: A maximum of 5 grace marks may be awarded in only one subject (Pr/Th/Head of Passing) of the examination if due to this the candidate passes the whole examination.
03: A maximum of 5 grace marks, which will be added to the total aggregate marks of the candidate and will declare the candidate to have passed the examination in First Class (Division) or First Class With Distinction.
04: A candidate shall be given grace marks of 05 for the award of class (Division) of the degree.