Rajya Sabha Passes The Indian Institutes of Management Amendment Bill, 2023

The Indian Institutes of Management (Amendment) Bill, 2023, amends the Indian Institutes of Management Act, 2017.

Rajya Sabha Passes The Indian Institutes of Management (Amendment) Bill, 2023 (Representational Image)

Source : IIM Indore

After the Lok Sabha, the Rajya Sabha has passed the Indian Institutes of Management (Amendment) Bill, 2023. The new bill amends the Indian Institutes of Management Act, 2017. Earlier on August 4, the Indian Institutes of Management (Amendment) Bill, 2023 was passed by the Lok Sabha, which was earlier introduced in the house on July 28. Amid disruptions over the bill, Union Education Minister Dharmendra Pradhan was reported saying in the parliament last week by news agency PTI, that the bill has no intention to interfere with the autonomy of the IIMs. The management accountability of IIMs shall remain with the President of India as earlier, the education minister was further reported as saying.

After receiving clearance from both houses of the parliament, the bill will now be headed to the President of India Droupadi Murmu for approval. Once the president approves the bill, it will become an act. Aimed at amending the Indian Institutes of Management Act, 2017, the bill proposes to appoint the president as the visitor to all Indian Institutes of Management with powers to audit their functioning, order probes and appoint as well as remove directors.

"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," PTI quoted the bill as stating. 

The bill also proposes to declare all 20 IIMs as ‘Institutions of National Importance,’ as well as Visitor’s nominee in the search-cum-selection panel for the appointment of Directors in IIMs. As per the Indian Institutes of Management Act, 2017, the board of governors of each IIM consists of 19 members out of which, two are representatives from state and central government each, while 17 others are nominated among eminent personalities, faculty and alumni.The board also appoints the search panel for the appointment of Directors and chairpersons, and also makes appointments on agreement with the search panel’s recommendations.