The Indian Institute of Management (Amendment) Bill, 2023, which assigns the responsibility of management accountability for the institutes to the President of India, was approved by the Lok Sabha.
The bill, which was introduced on July 28, was passed by the lower House amid disruptions by opposition members over the violence in Manipur.
Replying to a debate of the Bill, Education Minister Dharmendra Pradhan said the government has no intention to interfere with the autonomy of the IIMs.
The management accountability of the institutes has been entrusted with the President and the academic accountability will remain with the IIMs, Pradhan said.
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According to the bill, which seeks to amend the IIM Act of 2017, the President will be Visitor to the Indian Institutes of Management (IIMs) with powers to audit their functioning, order probes and appoint as well as remove directors.
“The Visitor may appoint one or more persons to review the work and progress of any institute, to hold enquiries into affairs thereof and to report in such manner as the Visitor may direct. The board may also recommend to the Visitor an enquiry as deemed proper against the institute which has not been functioning in accordance with provisions and objectives of the Act,” the bill stated.
Under the IIM Act, which came into force in January 2018 and granted the premier B-schools greater autonomy, the board of governors of each institute has 19 members which includes just one representative each from the central and state governments.
The board nominates its remaining 17 members from among eminent personalities, faculty and alumni. The board also appoints the search panels for the appointment of new directors and chairpersons, and later makes the appointments if it agrees with the search panel’s recommendations.
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However, according to the amendment bill, the search-cum-selection panel for the Directors appointment will have a Visitors nominee.
(With agency inputs)