NEW DELHI, OCTOBER 1: The Ministry of Human Resource Development’s attempt to increase the retirement age of IIM directors from 65 years to 70 has been disapproved by the Ministry of Law and Justice. According to official sources, the HRD Ministry didn’t consult the Department of Personnel and Training (DoPT) before taking the decision.
8 member panel suggested increased retirement age
The Law Ministry has objected the rules drafted under the Indian Institutes of Management (IIM) Act. The rules were shared by the Ministry of HRD for legal inspection this month. An eight-member panel headed by IIM Sirmaur chairperson and industrialist Ajay Shriram were asked by the government to give their suggestions for making rules pertaining to the IIM wherein the increase in retirement age was introduced.
The Ministry of Law and Justice is also against the conditions of the rules that give the ultimate power to the Ministry of HRD “in case of any doubt on any of the rules”. This clause, giving unlimited control and power to the government, goes in opposition to the essence of the IIM Act.
The IIM Act came into effect on January 31 this year. It gives power to all the 20 IIMs to decide on recruitment of directors, board members and chairpersons. Previously, the board used to appoint the director with prior consent from the Appointments Committee of the Cabinet (ACC) lead by the Prime Minister. With this law, the institutes can now award degrees for their postgraduate programmes.
The all-inclusive details including the procedure of appointment and removal of director and chairperson, their decision-making powers, and the responsibilities of the Board of Governors, are explained in this act.
Multiple changes made after feedback from PMO, IIMs
Based on the responses given by the Prime Minister’s Office and IIMs, multiple modifications have been made in the draft rules. The final document was to be shared soon after the Ministry of HRD forwarded it for the legal vetting. But the received feedback has called for various changes due to some provisions functioning outside the realm of the IIM Act. At present, the HRD Ministry is taking into consideration the suggestions given by the Law Ministry.
Law Ministry not happy with the draft
The Ministry of Law has remarked that the condition regarding the appointment of an acting chairperson for a “sudden vacancy” due to resignation or death of the incumbent may be removed as there is no such provision in the IIM Act. Moreover, it is also not quite satisfied with the fact that special power has been given to the chairpersons.
