IIM amendment bill proposing power to President to audit, make appointments triggers autonomy debate

NEW DELHI: A new amendment bill of the Centre that proposes 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, has triggered an "autonomy" debate for the prestigious B-schools.

The bill to amend the IIM Act of 2017 was introduced in the Lok Sabha last Friday amid disruptions by opposition members over the Manipur violence. While the Congress has alleged that PMO wants to maintain the tightest possible control and ensure "ideological purity", the IIMs are concerned about the amendment taking away their autonomy rather than just fixing accountability.

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"IIMs were given greater autonomy in 2017 and the legislation had wide support in Parliament. But six years later the Modi government is undoing what it itself had introduced. Clearly, autonomy is unwelcome for this government," Congress general secretary and MP Jairam Ramesh said.

According to the Indian Institutes of Management (Amendment) Bill, 2023, the President shall be visitor of every institute. "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.

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The IIMs are concerned about whether the bill will dilute their autonomy in the name of fixing accountability. "There can be other ways of fixing accountability. This will be a direct attack on the autonomy. The concept of an independent board governing the functioning of a B-school is a global model which has been successful everywhere... it can work in India too," the director of a top IIM said on condition of anonymity. The director of another IIM, echoed the sentiments saying, introducing the concept of Visitor in IIMs "is a way for the government to exercise direct control".

However, certain experts also believe that IIMs are public institutions and the bill will ensure they do not turn into private "fiefdoms".

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"IIMs are public institutions, answerable to the people of India (through parliament). They shouldn't turn into private fiefdoms. The leash on directors and Board of Governors provisioned in the bill should be keenly watched," said Atul Kumar, a policy analyst with the Ministry of Skill Development.