The Indian Institutes of Management (Amendment) Bill, 2023

Objective:

• The purpose of the Bill is to alter the Indian Institutes of Management Act of 2017.
• Prior to the 2017 Act, IIM directors, chairpersons, and board members were appointed by the Ministry of Education (previously known as the Ministry of Human Resource Development).
• The proposed modifications effectively attempt to change this scenario by giving the government a larger role in appointing the IIM Director.

How Will This Change Be Implemented?

• According to Section 5 of the amending Bill, the President of India will be the “Visitor of every Institute'” covered under the IIM Act.
• The Bill specifies three key tasks for the Visitor: making appointments, auditing the operation of institutions, and conducting an investigation.

Other Significant Proposed Bill Amendments:

• The bill removes the power of appointment of the Chairperson from the Board Members.
• It makes  the Chairperson a nominee of the President of India.
• In addition, the Bill recommends that the President designate one or more individuals to monitor the work and progress of any Institute and to conduct investigations into its activities.

Criticism:

• Control of Government: The  President of India is the Visitor with the authority to appoint and remove directors. It has expanded government control over the organizations. 

• Undermining Autonomy: Concerns have been raised about the bill’s potential to undermine the autonomy granted to IIMs in 2017, which might weaken their independence and decision-making power.

• Directors involvement undermined: IIM directors are concerned about a lack of consultation during the bill’s formulation, which they think may have an impact on the governance of the institutions.

Why in News?

• The Parliament passed a Bill giving itself a significant say in the appointment and removal of Directors of the Indian Institutes of Management (IIMs), and in initiating inquiries.