The Indian Institutes of Management (Amendment) Bill, 2023 |The LexSphere Library

SECTION Section 1

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•THE INDIAN INSTITUTES OF MANAGEMENT (AMENDMENT)

•BILL, 2023

•A

•BILL

•further to amend the Indian Institutes of Management Act, 2017.

•BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as

•follows:––

SECTION Section 10

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8.Section 17 of the principal Act shall be omitted.

SECTION Section 11

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9.In section 29 of the principal Act, in sub-section (2),—

(i)for clause (a), the following clause shall be substituted, namely:—

•"(a) an eminent person to be nominated by the Visitor as Chairperson;";

•(ii) for clause (d), the following clause shall be substituted, namely:—

•"(d) the Chairperson of each Institute—Member, ex officio;".

SECTION Section 12

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10.In section 34 of the principal Act, in sub-section (2),—

(i)for clause (a), the following clauses shall be substituted, namely:—

•"(a) the conditions and the procedure subject to which the Board may be

•suspended or dissolved under sub-section ( 6) of section 10;

•(aa) such other powers and duties of the Board under clause ( w) of

•sub-section (2) of section 11;";

•(ii) after clause (b

•), the following clauses shall be inserted, namely:—

•"(ba) the procedure to be adopted for selection of the Director under

•sub-section (3A) of section 16;

•(bb ) the manner of termination of services of Director under

•sub-section (10) of section 16;".

•Amendment

•of section 16.

•Omission of

SECTION Section 13

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•Section 17.

•Amendment of

SECTION Section 14

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•section 29.

•Amendment of

SECTION Section 15

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•section 34.

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SECTION Section 16

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11.In section 39 of the principal Act, in sub-section (1), after clause (c), the following

SECTION Section 17

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•clauses shall be inserted, namely:—

•"(d) the Board of National Institute of Industrial Engineering, Mumbai,

•functioning as such immediately before the commencement of the Indian Institutes of

•Management (Amendment) Act, 2023 shall continue to so function until a new Board

•is constituted for that Institute under this Act, but on such constitution of a new

•Board under this Act, the Members of the Board holding office before such

•constitution shall cease to hold office;

(e)the Academic Council constituted in relation to National Institute of Industrial

•Engineering, Mumbai, before the commencement of the Indian Institutes of

•Management (Amendment) Act, 2023 shall continue to so function until a new Academic

•Council is constituted for that Institute under this Act, but on the constitution of a

•new Academic Council under this Act, the Academic Council of the National Institute

•of Industrial Engineering, Mumbai shall cease to function;

(f)until the first regulations in relation to National Institute of Industrial

•Engineering, Mumbai are made under this Act, the rules and bye-laws of the National

•Institute of Industrial Engineering, Mumbai as in force immediately before the

•commencement of the Indian Institutes of Management (Amendment) Act, 2023

•shall continue to apply to the National Institute of Industrial Engineering, Mumbai

•with necessary modifications and adaptations in so far as they are not inconsistent

•with the provisions of this Act.".

SECTION Section 18

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12.On and from the date of commencement of the Indian Institutes of Management

•(Amendment) Act, 2023, in the Schedule to the principal Act, after Sl.No.20 and the entries

•relating thereto, the following Sl.No. and entries shall be inserted, namely:—

•"21. Maharashtra National Institute Mumbai Indian Institute

•of Industrial of Management,

•Engineering, Mumbai, Mumbai.".

•a Society registered

•under the Societies

•Registration

•Act, 1860 (21 of 1860).

•Amendment of

Schedule.

•Amendment of

SECTION Section 19

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•section 39.

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•STATEMENT OF OBJECTS AND REASONS

•The Indian Institutes of Management Act, 2017 (the Act) was enacted with a view to

•declare certain Institutes of management to be institutions of national importance with a

•view to empower these institutions to attain standards of global excellence in management,

•management research and allied areas of knowledge.

SECTION Section 2

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1.(1) This Act may be called the Indian Institutes of Management (Amendment)

•Act, 2023.

(2)It shall come into force on such date as the Central Government may, by notification

•in the Official Gazette, appoint.

SECTION Section 20

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2.In 1961, the Government of India decided to establish two Indian Institutes of

•Management at Calcutta and Ahmedabad. These specialised institutions were envisaged

•for increasing the pace of management training and education in India. As demand for more

•such institutions grew, four more Indian Institutes of Management at Bangalore, Lucknow,

•Indore and Kozhikode were established. In the Eleventh Plan, seven new Indian Institutes

•of Management at Shillong, Ranchi, Rohtak, Raipur, Kashipur, Tiruchirappalli and Udaipur

•were established. During 2015-16, seven more Indian Institutes of Management at Amritsar,

•Bodh Gaya, Jammu, Nagpur, Sambalpur, Sirmaur and Visakhapatnam were established.

•Subsequently, the Act enabled the Institutes to grant degrees, made governance of the

•Institutes uniform and Board driven and enabled them to exercise academic autonomy.

SECTION Section 21

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3.The National Institute of Industrial Engineering, Mumbai which was established in

•1963 by the Government of India is well known for its techno-managerial strength and

•contribution to the country's economic growth. However, as the Institute is not part of any

•Act of the Parliament, it has experienced several challenges. Despite consistently being

•among top management Institutes in the country, it is unable to grant degrees that has

•adversely affected the prospects of all stakeholders of the Institute, especially the students.

•Such limitations shall be addressed once the Institute comes under the purview of the Act,

•as they shall be able to grant degrees similar to that of all the Indian Institutes of Management

•under the Act. In this context, a Committee of Experts to deliberate on the feasibility and

•desirability of bringing the National Institute of Industrial Engineering, Mumbai under the

•Act was constituted and the Committee has strongly recommended to include the said

•Institute in the Act.

SECTION Section 22

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4.The present Bill, namely the Indian Institutes of Management (Amendment)

•Bill, 2023, in the light of above, seeks to amend the Indian Institutes of Management Act, 2017.

SECTION Section 23

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5.The salient features of the Indian Institutes of Management (Amendment) Bill 2023,

•inter alia, are as under:—

(i)to insert a new sub-section ( 1A) in section 4 of the Act to provide that the

•National Institute of Industrial Engineering, Mumbai shall be called the Indian

•Institute of Management, Mumbai and all the provisions of the Indian Institutes

•of Management Act, 2017 shall apply to such Institute;

•(ii) to amend section 10 of the Act to provide that the Chairperson of the Board of

•Governors shall be nominated by the Visitor and to empower the Central

•Government to constitute an interim Board in case of suspension or dissolution

•of the said Board of Governors;

•(iii) to insert a new section 10A to provide that the President of India shall be the

•Visitor of every Institute;

•(iv) to amend section 16 of the Act to provide that the Director of the Institute shall

•be appointed out of the panel of names recommended by a search-cum-selection

•committee to be constituted by the Board consisting of such Members as

•mentioned in sub-section ( 3) of said section;

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(v)to amend section 29 of the Act relating to "Coordination Forum of the Institute"

•so as to provide that an eminent person to be nominated by the Visitor shall be

•the Chairperson of the said Forum; and

•(vi) to amend the Schedule to the Act so as to insert the National Institute of

•Industrial Engineering, Mumbai in the list of the Institutes to be called as Indian

•Institute of Management, Mumbai which is of consequential in nature.

SECTION Section 24

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6.The Bill seeks to achieve the above objectives.

•N

•EW DELHI; DHARMENDRA PRADHAN.

•The 21st July, 2023.

•FINANCIAL MEMORANDUM

•The National Institute of Industrial Engineering, Mumbai has been allocated

•sixty-five crore rupees as grants-in-aid for the financial year 2022-23. It shall be provided a

•grant-in-aid of eighty crore rupees for a period of one year after becoming as Indian Institute

•of Management, Mumbai. After one year, no grants-in-aid support will be extended to the

Institute.Thus, there is no additional financial implication with regard to the proposed

•amendment of the Indian Institutes of Management Act, 2017. The National Institute of

•Industrial Engineering, Mumbai shall be generating this amount through additional internal

accruals.

•In view of the foregoing, the Bill, if enacted, would not involve any additional financial

•expenditure, either recurring or non-recurring, from and out of the Consolidated Fund of

India.

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•MEMORANDUM REGARDING DELEGATED LEGISLATION

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•Clause 11 of the Indian Institutes of Management (Amendment) Bill, 2023 relates to

•amendment of section 34. The said section empowers the Central Government to make rules

•in respect of certain matters mentioned in the Act. It is proposed to amend the said section

•empowering the Central Government to make rules in respect of the following matters also,

•namely:—

(a)the conditions and the procedure subject to which the Board may be

•suspended or dissolved under sub-section ( 6) of section 10;

(b)the procedure to be adopted for selection of Director under

•sub-section (3A) of section 16;

(c)the manner of termination of services of Director under sub-section (10) of

SECTION Section 26

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•section 16.

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2.The matters in respect of which the rules may be made under the aforesaid provisions

•are matters of detail and it is not practicable to provide for them in the Bill itself. The

•delegation of legislative power is, therefore, of a normal character.

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•ANNEXURE

•EXTRACTS FROM THE INDIAN INSTITUTES OF MANAGEMENT ACT, 2017

•(33 OF 2017)

•* * * * *

SECTION Section 28

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5.On and from the commencement of this Act,—

•* * * * *

(d)every person employed by every existing Institute immediately before such

•commencement shall hold his office or service in the corresponding Institute, with

•the same tenure, at the same remuneration and upon the same terms and conditions

•and with the same rights and privileges as to pension, leave, gratuity, provident fund

•and other matters as he would have held had this Act not been enacted and shall

•continue to do so unless and until his employment is terminated or until such tenure,

•remuneration and terms and conditions are duly altered by regulations:

•Provided that if the alteration so made is not acceptable to such employee, his

•employment may be terminated by the Institute in accordance with the terms of the

•contract with the employee, or, if no provision is made therein in this behalf, on

•payment, to him by the Institute, of a compensation equivalent to three months'

•remuneration in case of permanent employee and one months' remuneration in the

•case of other employee:

•Provided further that any reference, by whatever form of words, to the Director,

•and other officers of an existing Institute under any law for the time being in force, or

•in any instrument or other document, shall be construed as a reference to the Director,

•and other officers of the corresponding Institutes;

•* * * * *

(f)all suits and other legal proceedings instituted or which could have been

•instituted by or against an existing Institute, immediately before the commencement

•of this Act, shall be continued or instituted by or against the corresponding Institute.

•* * * * *

SECTION Section 29

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•CHAPTER III

•T

•HE AUTHORITIES OF INSTITUTES

SECTION Section 3

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2.In section 4 of the Indian Institutes of Management Act, 2017 (hereinafter referred

•to as the principal Act), after sub-section ( 1), the following sub-section shall be inserted,

•namely:—

•'(1A) On and from the date of commencement of the Indian Institutes of

•Management (Amendment) Act, 2023, the National Institute of Industrial Engineering,

•Mumbai, shall be called the ‘‘Indian Institute of Management, Mumbai’’ and all the

•provisions of this Act shall apply to the said Institute.'.

•Short title and

commencement.

•Amendment

•of section 4.

•33 of 2017.

•AS INTRODUCED IN LOK SABHA

•Bill No. 109 of 2023

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SECTION Section 30

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10.(1) * * * * *

(2)The Board of each Institute shall consist of the following members, namely:—

(a)a Chairperson, from amongst eminent persons distinguished in the field of

•industry or education or science or technology or management or public administration

•or such other field, to be appointed by the Board;

•* * * * *

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16.(1) * * * * *

(2)The Director shall be appointed by the Board, on such terms and conditions of

•service as may be prescribed.

(3)The Director shall be appointed out of the panel of names recommended by a

•search-cum-selection committee to be constituted by the Board, consisting of:—

•Effect of

•incorporation

•of Institutes.

•Board of

Governors.

Director.

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(a)the Chairperson of the Board, who shall be the Chairperson of the search-

•cum-selection committee;

(b)three members chosen from amongst eminent administrators, industrialists,

•educationists, scientists, technocrats and management specialists:

•Provided that where the Board is not satisfied with the recommendations of the

•search-cum-selection committee, it may ask the search-cum-selection committee to make

•fresh recommendations.

•* * * * *

(7)The Board may remove from office the Director, who—

(a)has been adjudged as an insolvent; or

(b)has been convicted of an offence which, in the opinion of the Board, involves

•moral turpitude; or

(c)has become physically or mentally incapable of acting as a Director; or

(d)has acquired such financial or other interest as is likely to affect prejudicially

•his functions as a Director; or

(e)has so abused his position or so conducted himself as to render his

•continuance in office prejudicial to the public interest:

•Provided that the Director shall not be removed from office except by an order made

•by the Board, after an enquiry instituted by it in which the Director has been informed of the

•charges against him and given a reasonable opportunity of being heard in respect of those

charges.

•* * * * *

SECTION Section 32

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17.(1) The Board may initiate an inquiry as deemed proper against the Institute which

•has not been functioning in accordance with the provisions and the objectives of the Act:

•Provided that such an inquiry shall be conducted by a retired High Court Judge.

(2)The Board may, based on the findings of such an inquiry, remove the Director or

•take any other action deemed fit, and the Institute shall be bound to comply with such

•directions within reasonable time.

•* * * * *

SECTION Section 33

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•CHAPTER V

•C

•OORDINATION FORUM

SECTION Section 34

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29.(1) * * * * *

(2)The Coordination Forum shall consist of the following members, namely:-—

(a)an eminent person to be selected by a Search-cum-Selection Committee as

•may be constituted by the Coordination Forum, as chairperson:

•Provided that the Coordination Forum may select one of its members to act as the

•chairperson till the chairperson is appointed;

•* * * * *

•Initiation of

inquiry.

•Establishment

•of

•Coordination

Forum.

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(d)four Chairpersons of Institutes, to be nominated by the Chairperson of the

•Coordination Forum, by rotation for two years;

•* * * * *

SECTION Section 35

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34.(1) * * * * *

(2)In particular, and without prejudice to the generality of the foregoing power, such

•rules may provide for all or any of the following matters, namely:—

(a)such other powers and duties of the Board under clause ( w) of

•sub-section (2) of section 11;

•* * * * *

•Power of

•Central

•Government

•to make rules.

•LOK SABHA

•————

•A

•BILL

•further to amend the Indian Institutes of Management Act, 2017.

•————

•(Shri Dharmendra Pradhan, Minister of Education )

•MGIPMRND—161LS(S3)—25-07-2023.

SECTION Section 4

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3.In section 5 of the principal Act,—

(i)in clause (d),—

(a)for the words "every person employed by every existing Institute",

•the words "every person, other than a Director employed by every existing

•Institute" shall be substituted;

(b)after the second proviso, the following proviso shall be inserted,

•namely:—

•"Provided also that the provisions of the first proviso shall also be

•applicable to the Directors of the Institutes.";

•(ii) after clause (f), the following Explanation shall be inserted, namely:—

•‘Explanation.—For the removal of doubts, it is hereby clarified that in

•relation to the Indian Institute of Management, Mumbai, the reference to the

•following expressions in sections 4 and 5—

(i)‘‘On and from the commencement of this Act’’;

•(ii) ‘‘before such commencement’’;

•(iii) ‘‘before commencement of this Act’’; and

•(iv) ‘‘before the commencement of this Act’’,

•shall be construed as the reference to the date on which the provisions of the

•Indian Institutes of Management (Amendment) Act, 2023 comes into force.’.

SECTION Section 5

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4.In section 10 of the principal Act,—

(a)in sub-section ( 2), in clause ( a), for the words "to be appointed by the

•Board", the words "to be nominated by the Visitor" shall be substituted;

(b)after sub-section (5), the following sub-section shall be inserted, namely:—

•"(6) Notwithstanding anything contained in this section, if the Board is

•suspended or dissolved under such conditions or procedure as may be

•prescribed, the Central Government shall constitute an interim Board for a period

•of six months or till a regular Board is constituted as per the provisions of this

Act.".

SECTION Section 6

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5.After section 10 of the principal Act, the following section shall be inserted,

•namely:—

•"10A. (1) The President of India shall be the Visitor of every Institute.

(2)The Visitor may appoint one or more persons to review the work and progress

•of any Institute and to hold inquiries into the affairs thereof and to report thereon in

•such manner as the Visitor may direct.

(3)The Board may also recommend to the Visitor, an inquiry as deemed proper

•against the Institute which has not been functioning in accordance with the provisions

•and objectives of the Act.

(4)Upon receipt of any such report referred to in sub-section ( 2), the Visitor

•may take such action and issue such directions as he considers necessary in respect

•of any of the matters dealt with in the report and the Institute shall be bound to

•comply with such directions.".

SECTION Section 7

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6.In section 12 of the principal Act, after sub-section (1), the following sub-section

•shall be inserted, namely:—

•"(1A) Notwithstanding anything contained in this section, an outgoing Member

•shall, unless the Board otherwise directs, continue in office until another person is

•appointed or nominated as a Member in his place.".

•Amendment

•of section 5.

•Amendment

•of section 10.

•Insertion of

•new section

10A.

•Amendment of

SECTION Section 8

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•section 12.

Visitor.

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SECTION Section 9

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7.In section 16 of the principal Act,—

(a)in sub-section (2), for the words "appointed by the Board, on such terms",

•the words "appointed by the Board with prior approval of the Visitor, in such manner

•and subject to such terms" shall be substituted;

(b)for sub-section ( 3), the following sub-sections shall be substituted,

•namely:—

•"( 3) The Director shall be appointed out of the panel of names

•recommended by a search-cum-selection committee to be constituted by the

•Board consisting of—

(a)the Chairperson of the Board, who shall be the Chairperson of

•the search-cum-selection committee;

(b)one Member to be nominated by the Visitor; and

(c)two Members chosen from amongst eminent administrators,

•industrialists, educationists, scientists, technocrats and management

specialists.

•(3A) The procedure to be adopted for selection of the Director shall be

•such as may be prescribed.";

(c)in sub-section ( 7), in the opening portion for the words "The Board may

•remove from office the Director", the words "The Board, with prior approval of the

•Visitor, may remove from office the Director" shall be substituted;

(d)after sub-section (9), the following sub-section shall be inserted, namely:—

•"(10) The services of the Director may be terminated by the Visitor, in

•such manner as may be prescribed.".