Indian Institutes of Management (Amendment) Bill 2023
Source: PIB
GS II: Important International institutions, agencies and fora- their structure, mandate
Overview
- Indian Institutes of Management (Amendment) Bill 2023
Why in News?
Recently the Parliament has passed the Indian Institutes of Management (Amendment) Bill, 2023, which aims to change the law governing the administration of Indian Institutes of Management (IIMs).
Key Provisions of the Bill
- President of India as a Visitor: It designates the President of India as a Visitor of every Institute covered by the Act.
- Appointment of IIM Director: The Bill mandates the Board to obtain the prior approval of the Visitor before appointing an Institute Director. The procedure for selecting the Director will be prescribed by the central government.
- Currently, the Director of an IIM is appointed by the Board of Governors, based on the recommendations of a Search-cum-Selection Committee.
- 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.
- Constitution of Search Committee: At present, the Search Committee comprises the Chairperson of the Board, and three members from amongst eminent administrators, industrialists and educationists.
- The Bill reduces these three members to two and adds another member to be nominated by the Visitor.
- Termination of Director: The Board will require prior approval of the Visitor before removing a Director. It also grants the Visitor the authority to terminate the services of the Director, as may be prescribed. The Bill also states the Chairperson of the Board will be nominated by the Visitor.
- Inquiries against IIMs: The Bill proposes a new procedure for inquiries against IIMs. It confers the power of inquiry upon the Visitor. The Visitor may appoint persons to review the work of any Institute and hold inquiries into its affairs.
- Based on the report of such inquiries, the Visitor may issue directions which will be binding on the Institute.
- Conditions for dissolving 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.
- Coordination Forum: At present, the Act provides for a Coordination Forum for all the Institutes, the Chairperson of which is selected by a Search-cumSelection Committee. Under the provisions of the Bill, 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.
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