अवलिप्तस्य filled with haughtiness, कार्याकार्यम् acts good and bad, अजानतः of one who does not know, उत्पथम् unrighteous path, प्रतिपन्नस्य of one who has resorted to, गुरोरपि even of a preceptor, शासनम् discipline, कार्यम् duty, भवति becomes.

Even a preceptor who follows the unrighteous path and is filled with haughtiness and does not know how to discriminate between good and bad, deserves to be disciplined (punished).