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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: ––
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.
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.vlk/kkj.k
EXTRAORDINARY
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PART II—Section 2
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LOK SABHA
————
The following Bill was introduced in Lok Sabha on 28th July , 2023:—
BILL NO. 109 OF 2023
CG-DL-E-28072023-247686
CG-DL-E-28072023-247686
CG-DL-E-28072023-247686
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.’.
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.".
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.".
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 12.Visitor .
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINAR Y 3
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 of fice 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.".
8. Section 17 of the principal Act shall be omitted.
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 ;".
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 17.
Amendment of
section 29.
Amendment of
section 34.
11. In section 39 of the principal Act, in sub-section ( 1), after clause ( c), the following
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 of fice 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.".
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 39.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINAR Y 5
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.
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 .
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.
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.
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;
(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.
6. The Bill seeks to achieve the above objectives.
NEW DELHI; DHARMENDRA PRADHAN.
The 21st July , 2023.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINAR Y 7
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.
MEMORANDUM REGARDING DELEGA TED LEGISLA TION
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 16.
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 .
————
UTPAL KUMAR SINGH,
Secretary General.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICA TIONS, DELHI–1 10054.
MGIPMRND—182GI(S3)—28-07-2023.8 THE GAZETTE OF INDIA EXTRAORDINAR Y [PART II—S EC. 2]
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