HRD ministry finalises IIM rules, sends them for vetting

NEW DELHI : The Union human resource development (HRD) ministry has finalised the Indian Institutes of Management (IIM) Rules, 2018, and sent them for vetting. The rules will come into force on the date of their publication in the official gazette. They have been framed for implementing the IIM Act, 2017.

Though complete autonomy has been provided regarding fixing of fees, the government has placed certain safeguards. “Whereas the Board of Governors of the institute is empowered to fix the fees, all institutes shall endeavour to ensure that no deserving student is denied education in the institute for want of funds,” say the rules.

In case of any doubt on any of the rules, the board will seek clarification from the HRD ministry and the clarification provided will be final as per rules.

On the issue of leadership, the selection of the chairperson will be made only with consent of at least two-third of the members present and voting and more than 50% of the board members present. “No chairperson can be removed except with consent of at least two-third of the members present and voting and more than 50% of the members of the Board in a special session to be convened by giving at least 15 days notice from which the chairperson shall recuse himself.”

No person can be director for more than two terms. A director can be removed only when the board approves such action with two-third of the members present and voting and more than 50% of the board members.

According to persons familiar with the developments, the drafting of the IIM rules took considerable time as there was conflict between the new and old IIMs regarding many aspects. “There were some concerns raised by the new IIMs that the rules were favouring older IIMs and they needed more handholding. The final rules have retained greater autonomy and concerns of all have been addressed,” said an HRD ministry official.

To ensure that there is no monopoly of alumni in the board, the government has classified categories of experts and alumni, which is also part of the Act. “The existing members will be classified into these categories by the government which had appointed them. They will complete their tenure as per appointment,” said another HRD official.

All institutes will “prepare a 3-year action plan, 5-year strategic plan and a 15-year vision plan and submit it to the government”. Also, all institutes will maintain canons of financial propriety as reflected in the General Financial Rules (GFR).

THE DRAFTING OF THE IIM RULES TOOK CONSIDERABLE TIME AS THERE WAS CONFLICT BETWEEN THE NEW AND OLD IIMS REGARDING MANY ASPECTS