The Indian Institute of Management Act, 2017
Administered Ministry: Ministry of Education / Department of Higher Education
Section
Section 1 Short title and commencement.
(1) This Act may be called the Indian Institutes of Management Act, 2017.
(2) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
(2) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.
1. 31st January, 2018, vide notification No. S.O. 149(E), dated 11th January, 2018, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
Section 2 Declaration of certain institutions as institutions of national importance.
Whereas the objects of the Institutes mentioned in the Schedule are such as to make them institutions of national importance, it is hereby declared that each such Institute is an institution of national importance.
Section 3 Definitions.
In this Act, unless the context otherwise requires,--
(a) "Academic Council" means the Academic Council referred to in section 14;
(b) "Board", in relation to any Institute, means the Board of Governors referred to in sub-section (1) of section 10;
(c) "Chairperson" means the Chairperson of the Board of Governors of the Institutes appointed under clause (a) of sub-section (2) of section 10;
(d) "Coordination Forum" means the Coordination Forum established under section 29;
(e) "corresponding Institute", in relation to an Institute mentioned in column (3) of the Schedule, means an Institute as specified against the said Institute in column (5);
(f) 1["Director" means] the Director of the Institute appointed under sub-section (2) of section 16;
(g) "existing Institute" means any Institute mentioned in column (3) of the Schedule;
(h) "Institute" means any Institute mentioned in column (5) of the Schedule;
(i) "notification" means a notification published in the Official Gazette and the expression "notify" with its cognate meanings and grammatical variation shall be construed accordingly;
(j) "Ordinances" means Ordinances made by the Academic Council under this Act;
(k) "prescribed" means prescribed by rules made under this Act;
(l) "regulations" means regulations made by the Board;
(m) "Schedule" means the Schedule annexed to this Act;
(n) "society" means any of the societies registered under the Societies Registration Act, 1860 (21 of 1860) or the Mysore Societies' Registration Act, 1960 (17 of 1960) or the Madhya Pradesh Societies Registration Act, 1973 (44 of 1973) or the Tamil Nadu Societies Registration Act, 1975 (27 of 1975) or the Jammu and Kashmir Societies Registration Act, 1998 (VI of 1998) mentioned in column (3) of the Schedule.
(a) "Academic Council" means the Academic Council referred to in section 14;
(b) "Board", in relation to any Institute, means the Board of Governors referred to in sub-section (1) of section 10;
(c) "Chairperson" means the Chairperson of the Board of Governors of the Institutes appointed under clause (a) of sub-section (2) of section 10;
(d) "Coordination Forum" means the Coordination Forum established under section 29;
(e) "corresponding Institute", in relation to an Institute mentioned in column (3) of the Schedule, means an Institute as specified against the said Institute in column (5);
(f) 1["Director" means] the Director of the Institute appointed under sub-section (2) of section 16;
(g) "existing Institute" means any Institute mentioned in column (3) of the Schedule;
(h) "Institute" means any Institute mentioned in column (5) of the Schedule;
(i) "notification" means a notification published in the Official Gazette and the expression "notify" with its cognate meanings and grammatical variation shall be construed accordingly;
(j) "Ordinances" means Ordinances made by the Academic Council under this Act;
(k) "prescribed" means prescribed by rules made under this Act;
(l) "regulations" means regulations made by the Board;
(m) "Schedule" means the Schedule annexed to this Act;
(n) "society" means any of the societies registered under the Societies Registration Act, 1860 (21 of 1860) or the Mysore Societies' Registration Act, 1960 (17 of 1960) or the Madhya Pradesh Societies Registration Act, 1973 (44 of 1973) or the Tamil Nadu Societies Registration Act, 1975 (27 of 1975) or the Jammu and Kashmir Societies Registration Act, 1998 (VI of 1998) mentioned in column (3) of the Schedule.
1. Subs. by Act 31 of 2019, s. 3 and Sch. II, for '"Director", means' (w.e.f. 8-8-2019).
Section 4 Incorporation of Institutes.
1[(1) Every Institute shall be a body corporate by the same name as mentioned in column (5) of the Schedule.]
2[(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.]
3[(1B) On and from the date of commencement of the Indian Institutes of Management (Amendment) Act, 2025, all the provisions of this Act shall apply to the Indian Institute of Management, Guwahati.]
(2) Every Institute referred to in column (5) of the Schedule shall have perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
2[(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.]
3[(1B) On and from the date of commencement of the Indian Institutes of Management (Amendment) Act, 2025, all the provisions of this Act shall apply to the Indian Institute of Management, Guwahati.]
(2) Every Institute referred to in column (5) of the Schedule shall have perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
1.Subs. by Act 31 of 2025, s. 2, for sub-section (1) (w.e.f. 01-09-2025).
2. Ins. by Act 23 of 2023, s. 2 (w.e.f. 16-08-2023).
3. Ins. by Act 31 of 2025, s. 2 (w.e.f. 01-09-2025).
2. Ins. by Act 23 of 2023, s. 2 (w.e.f. 16-08-2023).
3. Ins. by Act 31 of 2025, s. 2 (w.e.f. 01-09-2025).
Section 5 Effect of incorporation of Institutes.
On and from the commencement of this Act,---
(a) any reference to an existing Institute in any contract or other instrument shall be deemed as a reference to the corresponding Institute;
(b) all properties, movable and immovable, of or belonging to every existing Institute shall vest in the corresponding Institute;
(c) all rights and debts and other liabilities of every existing Institute shall be transferred to, and be the rights and liabilities of, the corresponding Institute;
(d) 1[every person, other than a Director 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;
2[Provided also that the provisions of the first proviso shall also be applicable to the Directors of the Institutes;]
(e) every person pursuing, before commencement of this Act, any academic or research course in every existing Institute, shall be deemed to have migrated and registered with the corresponding Institute, on such commencement at the same level of course in the Institute from which such person migrated;
(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.
2[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.]
(a) any reference to an existing Institute in any contract or other instrument shall be deemed as a reference to the corresponding Institute;
(b) all properties, movable and immovable, of or belonging to every existing Institute shall vest in the corresponding Institute;
(c) all rights and debts and other liabilities of every existing Institute shall be transferred to, and be the rights and liabilities of, the corresponding Institute;
(d) 1[every person, other than a Director 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;
2[Provided also that the provisions of the first proviso shall also be applicable to the Directors of the Institutes;]
(e) every person pursuing, before commencement of this Act, any academic or research course in every existing Institute, shall be deemed to have migrated and registered with the corresponding Institute, on such commencement at the same level of course in the Institute from which such person migrated;
(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.
2[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.]
1. Sub. by Act 23 of 2023, s. 3, for "every person employed by every existing Institute" (w.e.f. 16-8-2023).
2. Ins. by s. 3, ibid., (w.e.f. 16-8-2023).
2. Ins. by s. 3, ibid., (w.e.f. 16-8-2023).
Section 6 Objects of Institutes.
Each Institute shall have the following objects, namely:--
(a) to educate and support leaders who can contribute as professional managers, entrepreneurs, and stewards of existing and emerging enterprises in the private, public, and social sectors;
(b) to carry out research, publication, consultancy and advisory work to advance new knowledge and innovation and to provide global leadership in management theory and practice:
Provided that research so conducted shall also be directed towards such areas of study which shall enhance inclusive, equitable and sustainable national development goals as enshrined in the objects of the Act;
(c) to provide management education of high quality and to promote allied areas of knowledge as well as interdisciplinary studies;
(d) to sensitise management education to the vision of inclusive, equitable and sustainable national development goals in order to contribute holistically to Society;
(e) to support and develop programmes promoting social and gender equity;
(f) to develop educational programmes and faculties that advance the cause of education, teaching and learning, across disciplines;
(g) to set-up centres for management studies and allied areas;
(h) to support and collaborate with management institutions and other educational institutions in India;
(i) to co-operate and collaborate with educational or management institutions in other countries to extend the interests of management education and research.
(a) to educate and support leaders who can contribute as professional managers, entrepreneurs, and stewards of existing and emerging enterprises in the private, public, and social sectors;
(b) to carry out research, publication, consultancy and advisory work to advance new knowledge and innovation and to provide global leadership in management theory and practice:
Provided that research so conducted shall also be directed towards such areas of study which shall enhance inclusive, equitable and sustainable national development goals as enshrined in the objects of the Act;
(c) to provide management education of high quality and to promote allied areas of knowledge as well as interdisciplinary studies;
(d) to sensitise management education to the vision of inclusive, equitable and sustainable national development goals in order to contribute holistically to Society;
(e) to support and develop programmes promoting social and gender equity;
(f) to develop educational programmes and faculties that advance the cause of education, teaching and learning, across disciplines;
(g) to set-up centres for management studies and allied areas;
(h) to support and collaborate with management institutions and other educational institutions in India;
(i) to co-operate and collaborate with educational or management institutions in other countries to extend the interests of management education and research.
Section 7 Powers and functions of Institute.
Subject to the provisions of this Act, every Institute shall exercise the following powers and perform the following functions, namely:—
(a) to carry out the administration and management of the Institutes;
(b) to provide by regulations for the admission of candidates to the various courses of study in conformity with the laws for the time being in force;
(c) to specify and conduct courses of study, training and research in management and allied subjects and document, and disseminate knowledge thereof;
(d) to evolve innovative management education pedagogy aligned to dynamic global management practices;
(e) to conduct examinations and to establish processes for evaluation and performance assessment through a fair and transparent system;
(f) to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions;
(g) to lower the cost of education and to enhance the reach of the education by use of information and communication technology and other innovative methods;
(h) to establish and maintain such infrastructure as may be necessary;
(i) to determine, specify and receive payment of, fees and other charges as the Institute may deem fit, from students and any other person, institution or body corporate for instruction and other services, including training, consultancy and advisory services, provided by the Institute;
(j) to acquire, hold and deal with the property belonging to or vested in the Institute, with the approval of the Board, and in case of immovable property, under prior intimation to the Central Government, for advancing the objects of the Institute subject to the condition that such property is not obtained wholly or partly from the State Government or the Central Government funds:
Provided that where the land for the Institute has been provided free of cost by a State Government or the Central Government such land may be disposed of only with the prior approval of the Central Government;
(k) to create academic, administrative, technical, ministerial and other posts under the Institute other than the post of Director of the Institute and to make appointments thereto;
(l) to appoint committees for the disposal of any business of the Institute or for tendering advice in any matter pertaining to the Institute;
(m) to receive grants, gifts and contributions and to have custody of the funds including internally generated funds of the Institute to meet the expenses, including capital expenditure of the Institute including expenses incurred in the exercise of its powers and discharge of its functions;
(n) to create partnership, affiliation and other classes of professional or honorary or technical membership or office as the Institute may consider necessary;
(o) to perform such other functions as may be necessary for carrying out the objects of the Institutes;
(p) to do all such things and activities, incidental to the attainment of all or any of the objects of the Institute.
(a) to carry out the administration and management of the Institutes;
(b) to provide by regulations for the admission of candidates to the various courses of study in conformity with the laws for the time being in force;
(c) to specify and conduct courses of study, training and research in management and allied subjects and document, and disseminate knowledge thereof;
(d) to evolve innovative management education pedagogy aligned to dynamic global management practices;
(e) to conduct examinations and to establish processes for evaluation and performance assessment through a fair and transparent system;
(f) to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions;
(g) to lower the cost of education and to enhance the reach of the education by use of information and communication technology and other innovative methods;
(h) to establish and maintain such infrastructure as may be necessary;
(i) to determine, specify and receive payment of, fees and other charges as the Institute may deem fit, from students and any other person, institution or body corporate for instruction and other services, including training, consultancy and advisory services, provided by the Institute;
(j) to acquire, hold and deal with the property belonging to or vested in the Institute, with the approval of the Board, and in case of immovable property, under prior intimation to the Central Government, for advancing the objects of the Institute subject to the condition that such property is not obtained wholly or partly from the State Government or the Central Government funds:
Provided that where the land for the Institute has been provided free of cost by a State Government or the Central Government such land may be disposed of only with the prior approval of the Central Government;
(k) to create academic, administrative, technical, ministerial and other posts under the Institute other than the post of Director of the Institute and to make appointments thereto;
(l) to appoint committees for the disposal of any business of the Institute or for tendering advice in any matter pertaining to the Institute;
(m) to receive grants, gifts and contributions and to have custody of the funds including internally generated funds of the Institute to meet the expenses, including capital expenditure of the Institute including expenses incurred in the exercise of its powers and discharge of its functions;
(n) to create partnership, affiliation and other classes of professional or honorary or technical membership or office as the Institute may consider necessary;
(o) to perform such other functions as may be necessary for carrying out the objects of the Institutes;
(p) to do all such things and activities, incidental to the attainment of all or any of the objects of the Institute.
Section 8 Institutes to be open to all irrespective of sex, race, creed, caste or class.
(1) Every Institute shall be open to all persons irrespective of sex, race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever.
(2) No bequest, donation or transfer of any property shall be accepted by any Institute which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section.
(3) The admission to every academic course or programme of study in each Institute shall be based on merit assessed through transparent and reasonable criteria disclosed through its prospectus, prior to the commencement of the process of admission by such Institute:
Provided that nothing in this section shall be deemed to prevent the Institute from making special provisions for the employment or admission of women, persons with disabilities or for persons belonging to any socially and educationally backward classes of citizens and, in particular, for the Scheduled Castes and the Scheduled Tribes:
Provided further that every such Institute shall be a Central Educational Institution for the purposes of the Central Educational Institutions (Reservation in Admission) Act, 2006 (5 of 2007).
(2) No bequest, donation or transfer of any property shall be accepted by any Institute which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section.
(3) The admission to every academic course or programme of study in each Institute shall be based on merit assessed through transparent and reasonable criteria disclosed through its prospectus, prior to the commencement of the process of admission by such Institute:
Provided that nothing in this section shall be deemed to prevent the Institute from making special provisions for the employment or admission of women, persons with disabilities or for persons belonging to any socially and educationally backward classes of citizens and, in particular, for the Scheduled Castes and the Scheduled Tribes:
Provided further that every such Institute shall be a Central Educational Institution for the purposes of the Central Educational Institutions (Reservation in Admission) Act, 2006 (5 of 2007).
Section 9 Institute to be not-for-profit legal entity.
(1) Every Institute shall be a not-for-profit legal entity and no part of the surplus, if any, in revenue of such Institute, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such Institute or for conducting research therein.
(2) Every Institute shall strive to raise funds for self-sufficiency and sustainability.
(2) Every Institute shall strive to raise funds for self-sufficiency and sustainability.
Section 10 Board of Governors.
(1) The Board of Governors of each Institute shall be the principal executive body of that Institute.
(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,1[to be nominated by the Visitor];
(b) one nominee of the Central Government having charge of the management education or his representative;
(c) one nominee of the respective State Government or representative of such nominees, within whose territorial jurisdiction the Institute is located;
(d) four eminent persons, of which at least one shall be a woman, distinguished in the field of education, industry, commerce, social service or public administration, to be nominated by the Board, having such experience and in such manner as may be specified by regulations;
(e) two members from the faculty of respective Institutes to be nominated by the Chairperson, in the manner to be laid down by the Board by regulations;
(f) one person from the Scheduled Castes or Scheduled Tribes to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(g) up to five persons to be co-opted by the Board from the alumni or the members of society of the existing Institute who have distinguished themselves in the field of management:
Provided that out of such five persons, not more than one member shall be from the Society;
(h) three women members to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(i) Director of the Institute, ex officio member.
(3) The Board may nominate a person to fill up any temporary vacancy, of a member referred to in clauses (d) and (g) of sub-section (2), for a period which may extend to three months.
(4) The Board shall designate an officer of the Institute to act as Secretary of the Board.
(5) The Chairperson shall have the power to invite any number of experts, not being members of the Board, to attend meetings of the Board, but such invitees shall not be entitled to vote at the meeting.
2[(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.]
(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,1[to be nominated by the Visitor];
(b) one nominee of the Central Government having charge of the management education or his representative;
(c) one nominee of the respective State Government or representative of such nominees, within whose territorial jurisdiction the Institute is located;
(d) four eminent persons, of which at least one shall be a woman, distinguished in the field of education, industry, commerce, social service or public administration, to be nominated by the Board, having such experience and in such manner as may be specified by regulations;
(e) two members from the faculty of respective Institutes to be nominated by the Chairperson, in the manner to be laid down by the Board by regulations;
(f) one person from the Scheduled Castes or Scheduled Tribes to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(g) up to five persons to be co-opted by the Board from the alumni or the members of society of the existing Institute who have distinguished themselves in the field of management:
Provided that out of such five persons, not more than one member shall be from the Society;
(h) three women members to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(i) Director of the Institute, ex officio member.
(3) The Board may nominate a person to fill up any temporary vacancy, of a member referred to in clauses (d) and (g) of sub-section (2), for a period which may extend to three months.
(4) The Board shall designate an officer of the Institute to act as Secretary of the Board.
(5) The Chairperson shall have the power to invite any number of experts, not being members of the Board, to attend meetings of the Board, but such invitees shall not be entitled to vote at the meeting.
2[(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.]
1. Subs. by Act 23 of 2023, s. 4, for "to be appointed by the Board" (w.e.f. 16-8-2023).
2. Ins. by s. 4, ibid. (w.e.f. 16-8-2023).
2. Ins. by s. 4, ibid. (w.e.f. 16-8-2023).
Section 10A Visitor.
1[10A. Visitor.--- (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 this 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.]
(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 this 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.]
1. Ins. by Act 23 of 2023, s. 5, (w.e.f. 16-8-2023).
Section 11 Powers and functions of Board.
(1) Subject to the provisions of this Act, the Board of every Institute shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall have the power to frame or amend or modify or rescind the regulations governing the affairs of the Institute to achieve the objects of the Institute specified in section 6.
(2) Without prejudice to the provisions of sub-section (1), the Board shall have the following powers, namely:—
(a) to take decisions on questions of policy relating to the administration and working of the Institute;
(b) to examine and approve the annual budget estimates of the Institute;
(c) to examine and approve the plan for development of the Institute and to identify sources of finance for implementation of the plan;
(d) to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute;
(e) to set-up centres of management studies and allied areas within the country under intimation to the Central Government;
(f) to grant degrees, diplomas and other academic distinctions or titles, and to institute and award fellowships, scholarships, prizes and medals;
(g) to confer honorary degrees in such manner as may be specified by the regulations;
(h) to grant honorary awards and other distinctions;
(i) to create academic, administrative, technical and other posts and to make appointments thereto:
Provided that the cadre, the pay scales, allowances and term of employment of such posts shall be such as may be determined by the Central Government;
(j) to determine, by regulations, the number and emoluments of such posts and to define the duties and conditions of services of the academic, administrative, technical and other staff;
(k) to set-up centres of management studies and allied areas outside India in accordance with guidelines laid down by the Central Government from time to time and in accordance with the provisions of the laws for the time being in force in such foreign country;
(l) to pay, variable pay to the Director of the Institute on the basis of performance objectives as may be specified by the regulations;
(m) to specify by regulations, the fees to be charged for courses of study and examinations in the Institute;
(n) to specify by regulations the manner of formation of department of teaching;
(o) to specify by regulations the institution of fellowships, scholarships, exhibitions, medals and prizes;
(p) to specify by regulations the qualifications, classification, terms of office and method of appointment of the academic, administrative, technical and other staff of the Institute;
(q) to specify by regulations the constitution of pension, insurance and provident funds for the benefit of the academic, administrative, technical and other staff;
(r) to specify by regulations, the establishment and maintenance of buildings;
(s) to specify by regulations, the conditions of residence of students of the Institute and levying of fees for residence in the halls and hostels and of other charges;
(t) to specify by regulations, the manner of authentication of the orders and decisions of the Board;
(u) to specify by regulations, the quorum for meetings of the Board, the Academic Council or any Committee, and the procedures to be followed in the conduct of their business;
(v) to specify by regulations, the financial accountability of the Institute; and
(w) to exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the rules made thereunder.
(3) Subject to the provisions of this Act, the Board may by regulations, delegate such powers and functions of the Board to the Director as it may deem fit.
(4) The Board shall conduct an annual review of the performance of the Director, in the context of the achievements of objects of the Institute:
Provided that such review shall include performance reviews of faculty members of the Institute on such parameters, periodicity and terms of reference as may be determined by the Board.
(5) The Board shall, through an independent agency or group of experts, within a period of three years from the date of incorporation of the Institute, and thereafter at least once every three years, evaluate and review the performance of the Institutes, including its faculty, on the parameters of long term strategy and rolling plans of the Institutes and such other parameters as the Board may decide and the report of such review shall be placed in public domain.
(6) The qualifications, experience and the manner of selection of the independent agency or group of experts, referred to in sub-section (5), shall be such as may be specified by regulations.
(7) The report of the evaluation and review under sub-section (5) shall be submitted by the Board to the Central Government along with an action taken report thereon.
(8) Where in the opinion of the Chairperson or the Director the situation is so emergent that an immediate decision need to be taken in the interest of the Institute, the Chairperson, in consultation with the Director may issue such orders as may be necessary, recording the grounds for his opinion:
Provided that such orders shall be submitted for ratification by the Board in the next meeting.
(9) The Board shall in the exercise of its power and discharge of its functions under this Act, be accountable to the Central Government.
(2) Without prejudice to the provisions of sub-section (1), the Board shall have the following powers, namely:—
(a) to take decisions on questions of policy relating to the administration and working of the Institute;
(b) to examine and approve the annual budget estimates of the Institute;
(c) to examine and approve the plan for development of the Institute and to identify sources of finance for implementation of the plan;
(d) to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute;
(e) to set-up centres of management studies and allied areas within the country under intimation to the Central Government;
(f) to grant degrees, diplomas and other academic distinctions or titles, and to institute and award fellowships, scholarships, prizes and medals;
(g) to confer honorary degrees in such manner as may be specified by the regulations;
(h) to grant honorary awards and other distinctions;
(i) to create academic, administrative, technical and other posts and to make appointments thereto:
Provided that the cadre, the pay scales, allowances and term of employment of such posts shall be such as may be determined by the Central Government;
(j) to determine, by regulations, the number and emoluments of such posts and to define the duties and conditions of services of the academic, administrative, technical and other staff;
(k) to set-up centres of management studies and allied areas outside India in accordance with guidelines laid down by the Central Government from time to time and in accordance with the provisions of the laws for the time being in force in such foreign country;
(l) to pay, variable pay to the Director of the Institute on the basis of performance objectives as may be specified by the regulations;
(m) to specify by regulations, the fees to be charged for courses of study and examinations in the Institute;
(n) to specify by regulations the manner of formation of department of teaching;
(o) to specify by regulations the institution of fellowships, scholarships, exhibitions, medals and prizes;
(p) to specify by regulations the qualifications, classification, terms of office and method of appointment of the academic, administrative, technical and other staff of the Institute;
(q) to specify by regulations the constitution of pension, insurance and provident funds for the benefit of the academic, administrative, technical and other staff;
(r) to specify by regulations, the establishment and maintenance of buildings;
(s) to specify by regulations, the conditions of residence of students of the Institute and levying of fees for residence in the halls and hostels and of other charges;
(t) to specify by regulations, the manner of authentication of the orders and decisions of the Board;
(u) to specify by regulations, the quorum for meetings of the Board, the Academic Council or any Committee, and the procedures to be followed in the conduct of their business;
(v) to specify by regulations, the financial accountability of the Institute; and
(w) to exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the rules made thereunder.
(3) Subject to the provisions of this Act, the Board may by regulations, delegate such powers and functions of the Board to the Director as it may deem fit.
(4) The Board shall conduct an annual review of the performance of the Director, in the context of the achievements of objects of the Institute:
Provided that such review shall include performance reviews of faculty members of the Institute on such parameters, periodicity and terms of reference as may be determined by the Board.
(5) The Board shall, through an independent agency or group of experts, within a period of three years from the date of incorporation of the Institute, and thereafter at least once every three years, evaluate and review the performance of the Institutes, including its faculty, on the parameters of long term strategy and rolling plans of the Institutes and such other parameters as the Board may decide and the report of such review shall be placed in public domain.
(6) The qualifications, experience and the manner of selection of the independent agency or group of experts, referred to in sub-section (5), shall be such as may be specified by regulations.
(7) The report of the evaluation and review under sub-section (5) shall be submitted by the Board to the Central Government along with an action taken report thereon.
(8) Where in the opinion of the Chairperson or the Director the situation is so emergent that an immediate decision need to be taken in the interest of the Institute, the Chairperson, in consultation with the Director may issue such orders as may be necessary, recording the grounds for his opinion:
Provided that such orders shall be submitted for ratification by the Board in the next meeting.
(9) The Board shall in the exercise of its power and discharge of its functions under this Act, be accountable to the Central Government.
Section 12 Term of office of, vacancies among, and allowances payable to members of Board.
(1) Save as otherwise provided in this section, the term of office of the Chairperson or any other member of the Board, other than an ex officio member, shall be four years from the date of his appointment or nomination:
Provided that the term of office of a member nominated under clause (e) of sub-section (2) of section 11 shall be two years from the date of his nomination:
Provided further that the Chairperson, or any other member of the Board, other than an ex officio member, may be appointed or nominated for a second term:
Provided also that the Chairperson or any other member of the Board, other than an ex officio member, shall not be appointed or nominated for more than two consecutive terms.
1[(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.]
(2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member of the Board.
(3) A member of the Board, other than a nominee of the Central Government or the State Government, who fails to attend three consecutive meetings of the Board without permission of the Chairperson, shall cease to be a member of the Board.
(4) A casual vacancy of a member shall be filled up in accordance with the provisions of section 10.
(5) The term of office of a member nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been so nominated.
(6) Members of the Board shall be entitled to such allowances, as may be specified in the regulations, for attending meetings of the Board.
(7) The Board shall meet at least once in every three months.
Provided that the term of office of a member nominated under clause (e) of sub-section (2) of section 11 shall be two years from the date of his nomination:
Provided further that the Chairperson, or any other member of the Board, other than an ex officio member, may be appointed or nominated for a second term:
Provided also that the Chairperson or any other member of the Board, other than an ex officio member, shall not be appointed or nominated for more than two consecutive terms.
1[(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.]
(2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member of the Board.
(3) A member of the Board, other than a nominee of the Central Government or the State Government, who fails to attend three consecutive meetings of the Board without permission of the Chairperson, shall cease to be a member of the Board.
(4) A casual vacancy of a member shall be filled up in accordance with the provisions of section 10.
(5) The term of office of a member nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been so nominated.
(6) Members of the Board shall be entitled to such allowances, as may be specified in the regulations, for attending meetings of the Board.
(7) The Board shall meet at least once in every three months.
1. Ins. by Act 23 of 2023, s. 6 (w.e.f. 16-8-2023).
Section 13 Resignation of Chairperson.
The Chairperson may, by notice in writing under his hand addressed to the Board, resign from his office.
Section 14 Academic Council.
(1) The Academic Council shall be the principal academic body of every Institute, consisting of the following persons, namely:—
(a) Director of the Institute, who shall be the Chairperson of the Academic Council;
(b) Deans in charge of academics, research, student affairs and such other functions of the Institute;
(c) Chairs of Areas or Programmes, Heads or Coordinators of Faculties or Schools or Centres or Departments, of the Institute;
(d) all full time Faculty at the level of Professors and such number of other full time Faculty of the Institute as may be determined by the Board;
(e) such members, by invitation of the Board on the recommendation of the Director, who are eminent in the fields of industry, finance, management, public administration and academics.
(2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member.
(3) The term of office of a member nominated under clause (d) of sub-section (1) shall be two years from the date of his nomination.
(a) Director of the Institute, who shall be the Chairperson of the Academic Council;
(b) Deans in charge of academics, research, student affairs and such other functions of the Institute;
(c) Chairs of Areas or Programmes, Heads or Coordinators of Faculties or Schools or Centres or Departments, of the Institute;
(d) all full time Faculty at the level of Professors and such number of other full time Faculty of the Institute as may be determined by the Board;
(e) such members, by invitation of the Board on the recommendation of the Director, who are eminent in the fields of industry, finance, management, public administration and academics.
(2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member.
(3) The term of office of a member nominated under clause (d) of sub-section (1) shall be two years from the date of his nomination.
Section 15 Power and functions of Academic Council.
(1) The Academic Council shall perform the following functions, namely:—
(a) to specify the criteria and process for admission to courses or programmes of study offered by the Institute;
(b) to specify the academic content of programmes and courses of study and undertake modifications therein;
(c) to specify the academic calendar, guidelines for conduct of examination and recommend grant of degrees, diplomas and other academic distinctions or titles.
(2) The Academic Council shall exercise such other powers and perform such other functions as may be conferred upon it, by this Act or the regulations or by the Board.
(a) to specify the criteria and process for admission to courses or programmes of study offered by the Institute;
(b) to specify the academic content of programmes and courses of study and undertake modifications therein;
(c) to specify the academic calendar, guidelines for conduct of examination and recommend grant of degrees, diplomas and other academic distinctions or titles.
(2) The Academic Council shall exercise such other powers and perform such other functions as may be conferred upon it, by this Act or the regulations or by the Board.
Section 16 Director.
(1) The Director shall be the Chief Executive Officer of the Institute and shall provide leadership to the Institute and be responsible for implementation of the decisions of the Board.
(2) The Director shall be 1[appointed by the Board with prior approval of the Visitor, in such manner and subject to such terms] and conditions of service as may be prescribed.
2[(3) The Director shall be appointed out of the panel of names recommended by a search-cumselection 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.].
(4) The Director shall exercise the powers and perform the duties as may be assigned to him under this Act or the regulations or as may be delegated to him by the Board:
Provided that the Board may lay down the criteria to be followed by the Director while exercising powers and performing his duties, which shall be evaluated by the Board annually, and if the Board is of the opinion that such criteria has not been followed, then, the Board may, after giving an opportunity of being heard to the Director, initiate action for removal of such Director under sub-section (7).
(5) The Director shall, except on account of resignation or removal, hold office for a term of five years, from the date on which he enters upon his office.
(6) The Director may, by notice in writing under his hand addressed to the Board, through the Chairperson, resign his office at any time.
(7) 3[The Board, with prior approval of the Visitor, 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.
(8) Where the post of Director is likely to fall vacant on account of completion of tenure, the Board shall initiate the process of appointment nine months prior to the occurrence of such vacancy.
(9) Where the post of Director falls vacant on account of any reason, the Board may appoint the senior-most faculty in the institution as the Director in charge till a regular Director is appointed:
Provided that if the senior-most faculty is not willing to hold the post of Director in charge, then the next senior-most willing faculty may be appointed as Director in charge.
4[(10) The services of the Director may be terminated by the Visitor, in such manner as may be prescribed.]
(2) The Director shall be 1[appointed by the Board with prior approval of the Visitor, in such manner and subject to such terms] and conditions of service as may be prescribed.
2[(3) The Director shall be appointed out of the panel of names recommended by a search-cumselection 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.].
(4) The Director shall exercise the powers and perform the duties as may be assigned to him under this Act or the regulations or as may be delegated to him by the Board:
Provided that the Board may lay down the criteria to be followed by the Director while exercising powers and performing his duties, which shall be evaluated by the Board annually, and if the Board is of the opinion that such criteria has not been followed, then, the Board may, after giving an opportunity of being heard to the Director, initiate action for removal of such Director under sub-section (7).
(5) The Director shall, except on account of resignation or removal, hold office for a term of five years, from the date on which he enters upon his office.
(6) The Director may, by notice in writing under his hand addressed to the Board, through the Chairperson, resign his office at any time.
(7) 3[The Board, with prior approval of the Visitor, 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.
(8) Where the post of Director is likely to fall vacant on account of completion of tenure, the Board shall initiate the process of appointment nine months prior to the occurrence of such vacancy.
(9) Where the post of Director falls vacant on account of any reason, the Board may appoint the senior-most faculty in the institution as the Director in charge till a regular Director is appointed:
Provided that if the senior-most faculty is not willing to hold the post of Director in charge, then the next senior-most willing faculty may be appointed as Director in charge.
4[(10) The services of the Director may be terminated by the Visitor, in such manner as may be prescribed.]
1. Subs. by Act 23 of 2023, s. 7, for "appointed by the Board, on such terms" (w.e.f. 16-8-2023).
2. Subs. by s. 7,ibid., for sub-section (3) (w.e.f. 16-8-2023).
3. Subs. by s. 7 ibid., for "The Board may remove from office the Director" (w.e.f. 16-8-2023).
4. Ins. by s. 7,ibid. (w.e.f. 16-8-2023).
2. Subs. by s. 7,ibid., for sub-section (3) (w.e.f. 16-8-2023).
3. Subs. by s. 7 ibid., for "The Board may remove from office the Director" (w.e.f. 16-8-2023).
4. Ins. by s. 7,ibid. (w.e.f. 16-8-2023).
Section 17 Omitted.
[Initiation of inquiry].--- Omitted by the Indian Institutes of Management (Amendment) Act, 2023 (23 of 2023), s. 8 (w.e.f. 11-08-2023).
Section 18 Custodian of records, etc.
The Board may designate any officer or officers of the Institute as the custodian of records, common seal, funds of the Institute and any other property of the Institute.
Section 19 Role of members of Society.
The members of the societies referred to at serial numbers 2 and 3 under column (3) of the Schedule, may be engaged by the respective Boards of corresponding Institutes, for advisory assistance to it, by passing a resolution in that behalf.