IIM BILL 2023 (Syllabus: GS Paper 2 - Education)

Context: The Lok Sabha passed Indian Institute of Management (Amendment) Bill, 2023 proposing that the management accountability of the Indian Institutes of Management (IIM)s should be with the President, who will now be a Visitor. 

Highlights of the bill

• About: The Bill amends the Indian Institutes of Management Act, 2017.   

• The Act declares Indian Institutes of Management (IIMs) as institutes of national importance and regulates their functioning. 

• Visitor: The Bill designates the President of India as Visitor of every Institute covered by the Act.

• Appointment and removal of IIM Directors: Under the Act, the Director of an IIM is appointed by the Board of Governors, based on the recommendations of a Search-cum-Selection Committee.  

• The Bill mandates the Board to obtain the prior approval of the Visitor before appointing an Institute Director.

• Appointment of the Chairperson of the Board of Governors: Under the Act, the Chairperson of the Board of Governors of each Institute is appointed by the Board.  

• The Bill amends this to provide that the Chairperson of the Board will be nominated by the Visitor.

• Inquiries against IIMs: The Act empowers the Board to initiate an inquiry against an Institute if it has not been functioning in accordance with the Act.  A retired High Court judge conducts such inquiries.   Based on its findings, the Board may take any action that it deems fit.  

• The Bill removes all these provisions, and proposes a new procedure for inquiries. 

• Dissolution of the Board:  The Bill provides that the central government may prescribe the conditions and procedure for dissolving or suspending an Institute’s Board. 

• If a Board is suspended or dissolved, the central government will constitute an interim board for six months or until a new Board is constituted.

• Co-ordination Forum:  The Act provides for a Co-ordination Forum for all the Institutes. The Chairperson of the Forum is selected by a Search-cum-Selection Committee, constituted by the Forum.  

• The Bill amends this to provide that the Chairperson will be nominated by the Visitor. 

• Incorporation of Institutes: The Act provides that when an existing institution converts to an IIM under this Act, every employee of such institution will retain the same tenure, salary, pensions as before. 

• The Bill excludes the Director of such institutions from this provision.