New Delhi: The Indian Institutes of Management (Amendment) Bill, 2023 was approved by the Rajya Sabha on Tuesday. This important legislation brings changes to the management structure of IIMs granting authority to the President of India and thereby giving power to the central government. Some critics argue that this could compromise the autonomy that these prestigious business schools have enjoyed.
Earlier on August 4th, the Lok Sabha had already given its approval for this Bill.
The amendment modifies the Indian Institutes of Management Act of 2017. As per its provisions, the President of India will now be recognized as the Visitor for all institutes covered under this legislation.
Previously the appointment process for an IIM Director was overseen by the Board of Governors. The Board would make a decision based on guidance from a Search cum Selection Committee. However, with these provisions, the Board must now obtain approval from the Visitor before finalizing any Director appointment. Additionally, it will be up to the government to set criteria and procedures for this selection process.
Regarding the composition of the Search Committee, it previously included not the Chairperson but three other distinguished individuals from fields such as administration, industry, and education. The revised amendment reduces the number to two members. Adds a new member appointed by the Visitor.
To centralize authority more, the Bill now states that the Board must seek approval from the Visitor before removing a Director. Additionally, the Visitor is granted the power to terminate a Director’s services in situations.