LOK SABHA

————

The following Bills were introduced in Lok Sabha on the 9th February, 2017:—

BILL NO. 20 OF 2017

A Bill 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 and to provide

for certain other matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as

follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Indian Institutes of Management Act, 2017.

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

tion in the Official Gazette, appoint, and different dates may be appointed for different

provisions of this Act.

2. 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.

Short title

and

commencement.

Declaration

of certain

institutions as

institutions of

national

importance.

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EXTRAORDINARY

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PART II — Section 2

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PUBLISHED BY AUTHORITY

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Separate paging is given to this Part in order that it may be filed as a separate compilation.

REGISTERED NO. DL—(N)04/0007/2003—17

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

3. In this Act, unless the context otherwise requires,—

(a) ''Academic Council" means the Academic Council referred to in section 15;

(b) "Board", in relation to any Institute, means the Board of Governors referred

to in sub-section (1) of section 10;

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) "Director", means the Director of the Institute appointed under

sub-section (2) of section 17;

(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 or the Mysore Societies' Registration Act, 1960 or the Madhya

Pradesh Societies Registration Act, 1973 or the Tamil Nadu Societies Registration Act,

1975 or the Jammu and Kashmir Societies Registration Act, 1998 mentioned in column

(3) of the Schedule.

CHAPTER II

THE INSTITUTES

4. (1) On and from the commencement of this Act, every existing Institute shall be a

body corporate by the same name as mentioned in column (5) of the Schedule.

(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.

5. 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;

transferred to, and be the rights and liabilities of, the corresponding Institute;

Definitions.

21 of 1860.

17 of 1960.

44 of 1973.

27 of 1975.

VI of 1998.

Incorporation

of Institutes.

Effect of

incorporation

institutions.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(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;

(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.

6. 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;

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.

7. 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;

Objects of

Institutes.

Powers and

functions of

Institute.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

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 creat 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.

8. (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.

Institutes to

be open to all

irrespective

of sex, race,

creed, caste or

class.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(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.

9. (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.

CHAPTER III

THE AUTHORITIES OF INSTITUTES

10. (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, to be appointed by the Board;

(b) one nominee of the Central Government having charge of the management

education or his representative;

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.

Institute to be

not-for-profit

legal entity.

5 of 2007.

Board of

Governors.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(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.

11. (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;

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;

Powers and

functions of

Board.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(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.

12. (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.

(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.

Term of

office of,

vacancies

among, and

allowances

payable to

members of

Board.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(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.

13. The Chairperson may, by notice in writing under his hand addressed to the Board,

resign from his office.

14. (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;

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.

15. (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;

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.

16. (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 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:—

Resignation of

Chairperson.

Academic

Council.

Power and

functions of

Academic

Council.

Director.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

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

cum-selection committee;

(ii) 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.

(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) 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

(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.

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 Insitute shall be bound to comply with such

directions within reasonable time.

Initiation of

inquiry.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

18. 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.

19. 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.

20. (1) The Board may, constitute such committees and other authorities of the Institute

and specify the duties and functions of each such committees and authorities by regulations.

(2) The Board may constitute such ad hoc committees as it may deem fit, for proper

management of affairs of the Institute.

CHAPTER IV

ACCOUNTS AND AUDIT

21. For the purpose of enabling the Institutes to discharge their functions efficiently

under this Act, the Central Government may, after due appropriation made by Parliament by

law in this behalf, pay to every Institute such sums of money in such manner as it may think

fit.

22. (1) Every Institute shall maintain a Fund to which shall be credited—

(a) all moneys provided by the Central Government;

(b) all fees and other charges received by the Institute;

benefactions, bequests or transfers;

(d) all moneys received by the Institute from utilisation of intellectual property

arising from research conducted or rendering advisory or consultancy services

by it; and

(e) all moneys received by the Institute in any other manner or from any other

source.

(2) All moneys credited to the Fund of every Institute shall be deposited in such banks

or invested in such manner as may be laid down by the Board by regulations.

(3) Each Institute shall create a corpus fund for long term sustainability of the Institute,

to which shall be credited such per cent. of the net income of the Institute and donations

made specifically towards such corpus fund as the Central Government may in accordance

with the provisions of the Income tax Act, 1961, notify:

Provided that the Board may also create endowment funds for specific purposes to

which donations may be specifically made.

(4) The fund of any Institute shall be applied in such manner and for such purposes as

may be specified by the regulations.

23. (1) Every Institute shall maintain proper accounts including income and expenditure

statements, internal audit report and statement audited by internal auditor specifying

investments and other relevant records and prepare annual statement of accounts including

the balance sheet in such form and as per such accounting standard as may be specified by

notification by the Central Government in consultation with the Comptroller and Auditor-

General of India.

(2) Where the statement of income and expenditure and the balance sheet of the

Institute do not comply with the accounting standards, the Institute shall disclose in its

statement of income and expenditure and balance sheet, the following, namely:—

(a) the deviation from the accounting standards;

(b) the reasons for such deviation; and

Grants by

Central

Government.

Fund of

Institute.

Accounts and

audit.

43 of 1961.

Committees

and other

authorities.

Role of

members of

Society.

Custodian of

records, etc.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(3) The accounts of every Institute shall be audited by the Comptroller and Auditor-

General of India and any expenditure incurred by audit team in connection with such audit

shall be payable by the Institute to the Comptroller and Auditor-General of India.

(4) The Comptroller and Auditor-General of India and any person appointed by him in

connection with the audit of the accounts of the Institute shall have the same rights, privileges

and authority in connection with such audit as the Comptroller and Auditor-General of India

has in connection with the audit of the Government accounts and, in particular, shall have

the right to demand the production of books, accounts, connected vouchers and other

documents and papers and to inspect the offices of the Institute.

(5) The accounts of every Institute as certified by the Comptroller and Auditor-General

of India or any other person appointed by him in this behalf together with the audit report

thereon shall be forwarded annually to the Central Government and that Government shall

cause the same to be laid before each House of Parliament in accordance with such procedure

as may be laid down by the Central Government.

24. Every Institute shall keep proper updated books of account with respect to—

(a) all sums of money received and expended by it and the matters in respect of

which receipt and expenditure takes place;

(b) the assets and liabilities of the Institute;

(c ) the properties, movable and immovable of the Institute.

Explanation.—For the purposes of this section, if books of account give a true and

fair view of the state of affairs of the Institute and its transactions, it shall be deemed as

proper books of account with respect to the matters specified therein.

25. (1) The Board of every Institute shall, prior to the end of every financial year, and

without prejudice to the provisions contained in the Comptroller and Auditor-General's

(Duties, Powers and Conditions of Service) Act, 1971 or any other law for the time being in

force containing provisions for audit of accounts by the Institutes, appoint such auditors

including the internal auditor, on such remuneration as it thinks appropriate, to scrutinise the

balance sheet and the statement of income and expenditure of such Institute:

Provided that the Board shall change the auditors after every four years.

(2) The Board of every Institute shall constitute an Audit Committee to provide an

expert advice on effectiveness of internal control system, risk management and audit report

to the Board.

(3) The auditor appointed under sub-section (1) or any person employed by him shall

not have any direct or indirect interest, whether pecuniary or otherwise, in any matter

concerning or related to the administration or functions of the Institute.

26. (1) There shall be attached to every statement of accounts laid before the Board of

each Institute under section 27, a report, by its Director, with respect to—

(a) the state of affairs of such Institute;

(b) the amounts, if any, which it proposes to carry to any surplus reserves in its

balance sheet;

over expenditure or any shortfall of expenditure over income has been indicated in the

auditor's report and the reasons for such understatement or overstatement;

(d) the productivity of research projects undertaken by the Institute measured in

accordance with such norms as may be specified by the Board;

(e) appointments of the officers and faculty members of the Institute;

(f) performance indicators and internal standards set by the Institute, including

the nature of innovations in teaching, research and application of knowledge.

Books of

account to be

maintained

by Institute.

56 of 1971.

Annual report

of Director.

Appointment

of auditors.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(2) The report of the Director shall also include a statement showing the names of the five

officers including faculty members and other employees of the Institute who received the highest

remuneration (including allowances and other payments made to such employees) during the

financial year and the contributions made by such employee during the financial year.

(3) The statement referred to in sub-section (2) shall indicate whether any such employee

is a relative of any member of the Board or Academic Council of the Institute and if so, the

name of such member; and such other particulars as may be determined by the Board.

(4) The Director shall also be bound to give the complete information and

explanations in the report referred to in sub-section (1) on every reservation, qualification

or adverse remark contained in the auditors' report.

27. (1) The statement of accounts, including the balance sheet and the statement of income

and expenditure, the auditor's report, the report of the Director and other documents required to be

annexed or attached with such statement, shall be brought before the Board of concerned Institute

in its meeting not later than three months, from the conclusion of the financial year.

(2) A copy of every statement of accounts referred to in sub-section (1) shall be sent

to every member of the Board not less than twenty-one days before the date of the meeting.

(3) The statement of accounts referred to in sub-section (1) shall on its approval by

the Board, be published on the website of the Institute.

28. (1) The annual report of every Institute shall be prepared under the directions of

the Board, which shall include, among other matters, steps taken by the Institute towards the

fulfilment of its objects and an outcome based assessment of the research being undertaken

in such Institute.

Explanation.—For the purposes of this sub-section, the expression "outcome based

assessment of research" shall mean an elaboration and analysis of the research conducted

and the qualitative and quantitative outcomes of such research along with its impact factor

and social outcomes.

(2) The annual report prepared under sub-section (1) shall be submitted to the Board

on or before such date as may be specified by the Board who shall consider the report in its

meeting.

(3) The annual report on its approval by the Board shall be published on the website

of the Institute.

(4) The annual report of each Institute shall be submitted to the Central Government

who shall, as soon as may be, cause the same to be laid before both Houses of Parliament.

CHAPTER V

COORDINATION FORUM

29. (1) With effect from such date as the Central Government may, by notification,

specify in this behalf, there shall be established a Coordination Forum for all the Institutes.

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

(a) an eminent person to be seleted 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;

(b) the Secretary to the Government of India, in charge of the Ministry or

Department of the Central Government having administrative control of management

education, member—ex officio;

which the Institutes are located, by rotation, each year, member—ex officio;

Board to

consider

statement of

accounts.

Annual report

of Institute.

Establishment

of Co-

ordination

Forum.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

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

Coordination Forum, by rotation for two years;

(e) the Director of each Institute, member—ex officio;

(f) five persons of eminence, of which at least one shall be a woman, in academia

or public service, to be selected by a sub-committee constituted by the Coordination

Forum.

(3) The term of office of a member referred to in clause (f) of sub-section (2) shall be

three years from the date of his nomination.

(4) The non-official members of the Coordination Forum shall be entitled to such

travelling and other allowances, as may be prescribed.

(5) The Director of the host Institute where the meeting of the Coordination Forum

takes place shall be the Member Secretary of the Coordination Forum and shall continue to

be the Member-Secratary till a new host Institute is selected.

30. (1) The Coordination Forum shall facilitate the sharing of experiences, ideas and

concerns with a view to enhancing the performance of all Institutes.

(2) Without prejudice to the provisions of sub-section (1), the Coordination Forum

shall perform the following functions, namely:—

(a) recommend to the Central Government, the institution of scholarships

including for research and for the benefit of students belonging to the Scheduled

Castes, the Scheduled Tribes and other socially and educationally backward classes

of citizens;

(b) deliberate on such matters of common interest to Institutes as may be referred

to it by any Institute;

Institutes;

(d) review the achievement of policy objectives; and

(e) perform such other functions as may be referred to it by the Central

Government.

(3) The Coordination Forum may constitute such committees as it may consider

necessary for carrying out its functions under this section.

(4) The Chairperson of the Coordination Forum shall ordinarily preside at the meetings

of the Coordination Forum and in his absence, any other member chosen by the members

present amongst themselves at the meeting, shall preside at the meeting.

(5) The Coordination Forum shall submit a report on its functions under sub-section (2)

to the Central Government.

(6) The Coordination Forum shall meet at least once in a calendar year.

(7) At each meeting of the Coordination Forum, the host institute, which would host

the next meeting, shall be selected:

Provided that no Institute shall host the meeting for more than two consecutive years.

CHAPTER VI

MISCELLANEOUS

31. No act of any Institute or the Board or the Academic Council or any other body

set-up under this Act or the regulations, shall be invalid merely by reason of—

(a) any vacancy or defect in the constitution thereof; or

(b) any irregularity in its procedure not affecting the merits of the case; or

a member thereof.

Functions of

Coordination

Forum.

Acts and

proceedings

not to be

invalidated by

vacancies,

etc.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

32. Every Institute shall furnish to the Central Government such returns or other

information with respect to its policies or activities as the Central Government may, for the

purpose of reporting to the Parliament or for the making of policy, from time to time,

require.

33. (1) The provisions of the Right to Information Act, 2005 shall apply to each Institute,

including Institutes established in public-private partnership, as if it were a public authority

established by notification issued or order made under clause (h) of section 2 of the Right to

Information Act, 2005.

(2) A copy of every notification proposed to be issued or order to be made under the Act

referred to in sub-section (1), shall be laid in draft before each House of Parliament, while it is in

session, for a total period of thirty days which may be comprised in one session or in two or

more successive sessions, and if, before the expiry of the session immediately following the

session or the successive sessions aforesaid, both Houses agree in disapproving the issue of

the notification or order or both Houses agree in making any modification in the notification or

order, the notification or order shall not be issued or made, as the case may be, shall be issued

or made only in such modified form as may be agreed upon by both the Houses.

34. (1) The Central Government may, by notification, make rules, for carrying out the

provisions of this Act.

(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;

(b) the term and conditions of service of the Director under sub-section (2) of

section 16;

Forum for attending its meetings or its Committees under sub-section (4) of section 29;

(d) any other matter which is to be or may be, prescribed or in respect of which

provision is to be made by the Central Government by rules.

35. (1) The Board may, by notification, make regulations not inconsistent with this Act

and the rules made thereunder to carry out the provisions of this Act.

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

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

(a) tenure, remuneration and terms and conditions of employees of existing

Institute under clause (d) of section 5;

(b) admission of candidates to the various courses of study under clause (b) of

section 7;

under clause (e) of sub-section (2) of section 10;

(d) the conferment of honorary degrees under clause (g) of sub-section (2) of

section 11;

(e) the number of posts, emoluments and the duties and conditions of service of

the academic, administrative, technical and other staff under clause (j) of sub-section (2)

of section 11;

(f) determine performance objectives on the basis of which variable pay may be

paid to the Director under clause (i) of sub-section (2) of section 11;

(g) to specify by regulations, the fees to be charged for course of study and

examinations in the Institute under clause (m) of sub-section (2) of section 11;

Returns and

information

to be provided

to Central

Government.

Institute to be

public

authority

under Right to

Information

Act.

Power of

Central

Government

to make rules.

Regulations

how made.

22 of 2005.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(h) the manner of formation of Departments of teaching under clause (n) of

sub-section (2) of section 11;

(i) the institution of fellowships, scholarships, exhibitions, medals and prizes

under clause (o) of sub-section (2) of section 11;

(j) the qualifications, classification, terms of office and method of appointment

of the academic, administrative, technical and other staff of the Institute under

clause (p) of sub-section (2) of section 11;

(k) the constitution of pension, insurance and provident funds for the benefit of the

academic, administrative, technical and other staff under clause (q ) of sub-section (2) of

section 11;

(l) the establishment and maintenance of buildings under clause (r) of

sub-section (2) of section 11;

(m) the conditions of residence of students of the Institute and levying of fees

for residence in the halls and hostels and of other charges under clause (s) of

sub-section (2) of section 11;

(n) the manner of authentication of the orders and decisions of the Board under

clause (t) of sub-section (2) of section 11;

(o) the meetings of the Board, the Academic Council or any Committee, the

quorum at such meetings and the procedure to be followed in the conduct of their

business under clause (u) of sub-section (2) of section 11;

(p) the financial accountability of the Institute under clause (v) of sub-section (2)

of section 11;

(q) delegate such powers and functions of the Board to the Director under

sub-section (3) of section 11;

(r) the qualifications, experience and the manner of selection of the independent

agency or group of experts under sub-section (5) of section 11;

(s) allowances of the members of the Board for attending meetings under

sub-section (6) of section 12;

(t) such other powers and functions of the Academic Council under sub-section (2)

of section 15;

(u) the powers and duties of the Director under sub-section (4) of section 16;

(v) constitution of such committees and other authorities of the Institute and

their duties and functions under sub-section (1) of section 20;

(w) the manner of depositing or investing the moneys credited to the Fund of

every Institute under sub-section (2) of section 21;

(x) the manner of application of the Fund of the Institute under sub-section (4)

of section 21; and

(y) any other matter which is to be or may be, specified by regulations.

36. (1) Save as otherwise provided in this section, Ordinance shall be made by the

Academic Council.

(2) Subject to the provisions of this Act and the rules and regulations made thereunder,

the Ordinances of every Institute may provide for all or any of the following matters, namely:—

(a) the admission of students to the Institute;

Ordinances

how made.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

(b) the courses of study to be laid down for all degrees and diplomas of the

Institute;

diploma courses and to the examinations of the Institute, and shall be eligible for

degrees and diplomas;

(d) the conditions of award of the fellowships, scholarships, exhibitions, medals

and prizes;

(e) the conditions and model of appointment and duties of examining bodies,

examiners and moderators;

(f) the conduct of examinations;

(g) the maintenance of discipline among the students of the Institute; and

(h) any other matter which is to be or may be provided for by the Ordinances.

(3) All Ordinances made by the Academic Council shall have effect from such date as

it may direct, but every Ordinance so made shall be submitted, as soon as may be, to the

Board and shall be considered by the Board at its next meeting.

(4) The Board shall have power by resolution to modify or cancel any such Ordinance

and such Ordinance shall from the date of such resolution stand modified accordingly or

cancelled, as the case may be.

37. Every rule made by the Central Government and the first regulation made by the

Board under this Act shall be laid, as soon as may be after it is made, before each House of

Parliament, while it is in session, for a total period of thirty days which may be comprised in

one session or in two or more successive sessions, and if, before the expiry of the session

immediately following the session or the successive sessions aforesaid, both Houses agree

in making any modification in the rule or regulation or both Houses agree that the rule or

regulation shall not be made, the rule or regulation shall thereafter have effect only in such

modified form or be of no effect, as the case may be; so, however, that any such modification

or annulment shall be without prejudice to the validity of anything previously done under

that rule or regulation.

38. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central

Government may, by order published in the Official Gazette, make such provisions not

inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient

for removing the difficulty:

Provided that no such order shall be made under this section after the expiry of the

period of three years from the date of commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid

before each House of Parliament.

39. (1) Notwithstanding anything contained in this Act:—

(a) the Board of every Institute functioning as such immediately before the

commencement of this Act shall continue to so function until a new Board is constituted

for that Institute under this Act, but on the constitution of a new Board under this Act,

the members of the Board holding office before such constitution shall cease to hold

office;

(b) every Academic Council or Faculty Council, as the case may be, constituted

in relation to every Institute before the commencement of this Act shall be deemed to

be the Academic Council constituted under this Act until an Academic Council is

constituted under this Act for that Institute, but on the constitution of the new Academic

Council under this Act, the members of the Academic Council or Faculty Council, as

the case may be, holding office before such constitution shall cease to hold office;

Rules and

regulations to

be laid before

Parliament.

Power to

remove

difficulties.

Transitional

provisions.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

THE SCHEDULE

[See section 4(1)]

Sl.

Name of

Name of the existing Institute

Location

Name of Institute

No. the State

incorporated under

this Act

(1)

(2)

( 3 )

(4)

(5)

West Bengal

Indian Institute of Management

Kolkata

Indian Institute of

Calcutta, a Society registered under

Management, Kolkata.

the Societies Registration Act, 1860

(21 of 1860).

Gujarat

Indian Institute of Management

Ahmedabad

Indian Institute of

Ahmedabad, a Society registered

Management,

under the Societies Registration

Ahmedabad.

Act, 1860 (21 of 1860).

Karnataka

Indian Institute of Management

Bengaluru

Indian Institute of

Bangalore, a Society registered

Management, Bangalore.

under the Mysore Societies'

Registration Act, 1960

(17 of 1960).

Uttar Pradesh

Indian Institute of Management

Lucknow

Indian Institute of

Lucknow, a Society registered under

Management, Lucknow.

the Societies Registration Act, 1860

(21 of 1860).

Madhya Pradesh

Indian Institute of Management

Indore

Indian Institute of

Indore, a Society registered under

Management, Indore.

the Madhya Pradesh Societies

Registration Act, 1973

(44 of 1973).

Kerala

Indian Institute of Management

Kozhikode

Indian Institute of

Kozhikode, a Society registered under

Management,

the Societies Registration Act, 1860

Kozhikode.

(21 of 1860).

Meghalaya

Rajiv Gandhi Indian Institute of

Shillong

Indian Institute of

Management Shillong, a Society

Management, Shillong.

registered under the Societies

Registration Act, 1860 (21 of 1860).

Haryana

Indian Institute of Management

Rohtak

Indian Institute of

Rohtak, a Society registered under

Management, Rohtak.

the Societies Registration Act, 1860

(21 of 1860).

Jharkhand

Indian Institute of Management

Ranchi

Indian Institute of

Ranchi, a Society registered under

Management, Ranchi.

the Societies Registration Act, 1860

(21 of 1860).

10.

Chhattisgarh

Indian Institute of Management

Raipur

Indian Institute of

Raipur, a Society registered under

Management, Raipur.

the Societies Registration Act, 1860

(21 of 1860).

11.

Tamil Nadu

Indian Institute of Management

Tiruchirappalli Indian Institute of

Tiruchirappalli, a Society registered

Management,

under the Tamil Nadu Societies

Tiruchirappalli.

Registration Act, 1975.

12.

Uttarakhand

Indian Institute of Management

Kashipur

Indian Institute of

Kashipur, a Society registered under

Management, Kashipur.

the Societies Registration Act, 1860

(21 of 1860).

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

13.

Rajasthan

Indian Institute of Management

Udaipur

Indian Institute of

Udaipur, a Society registered under

Management, Udaipur.

the Societies Registration Act, 1860

(21 of 1860).

14.

Punjab

Indian Institute of Mangement

Amritsar

Indian Institute of

Amritsar, a Society resigtered under the

Management,

Societies Registration Act, 1860

Amritsar.

(21 of 1860).

15.

Himachal

Indian Institute of Management Sirmaur,

Sirmaur

Indian Institute of

Pradesh

a Society registered under the Societies

Management,

H.P.

Registration Act, 1860 (21 of 1860).

Sirmaur.

16.

Odisha

Indian Institute of Management

Sambalpur

Indian Institute of

Sambalpur, a Society registered under

Management,

the Societies Registration Act, 1860

Sambalpur.

(21 of 1860).

17.

Andhra

Indian Institute of Management

Visakhapatnam

Indian Institute of

Pradesh

Vishakhapatnm, a Society registered

Management,

under the Societies Registration

Visakhapatnam.

Act, 1860 (21 of 1860).

18.

Maharashtra

Indian Institute of Management Nagpur,

Nagpur

Indian Institute of

a Society Registered under the Societies

Management,

Registration Act, 1860 (21 of 1860).

Nagpur.

19.

Bihar

Indian Institute of Management Bodh

Bodhgaya

Indian Institute of

Gaya, a Society registered under the

Management,

Societies Registration Act, 1860

Bodhgaya.

(21 of 1860).

20.

Jammu and

Indian Institute of Management Jammu, a

Jammu

Indian Institute of

Kashmir

Society registered under the Jammu and

Management, Jammu.

Kashmir Societies Registration

Act, 1998 (VI of 1998.)

(1)

(2)

( 3 )

(4)

(5)

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

STATEMENT OF OBJECTS AND REASONS

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

Management (IIMs), one in Calcutta and other in Ahmedabad, which were industrial, research

and commercial hubs of the country. These specialised institutions were envisaged to be

outside the University system for greater flexibility and autonomy and for increasing the

pace of management training and education in India. Thereafter, IIMs were established at

Bangalore in 1973, IIM Lucknow in 1984, IIM Indore in 1996 and IIM Kozhikode in 1997. In

the 11th plan, seven new IIMs at Shillong (2008), Ranchi (2010), Rohtak (2010), Raipur (2010),

Kashipur (2011), Tiruchirapalli (2011) and Udaipur (2011) were established. Five new IIMs

were established in Amritsar, Bodhgaya, Nagpur, Sambalpur and Sirmaur and another IIM at

Visakhapatnam was established as part of the Andhra Pradesh Reorganisation Act, 2014.

The twentieth IIM at Jammu was announced in the Budget proposal of 2015-16. The six new

IIMs started functioning from the academic session 2015-16 and IIM Jammu started its

academic session from 2016-17 from their transit campuses.

2. IIMs provide post-graduate, doctoral, post-doctoral and research education in the

field of management and allied areas of knowledge. Being registered under the Societies Act,

IIMs award to their students Post-graduate Diploma in Management and Fellow Programme

in Management and are not entitled to use the nomenclature of Master of Business

Administration (MBA) or Ph.D degree as issued by an University or Institution of National

importance.

3. While, the Post-graduate Diploma in Management programme (equivalent to MBA)

was relatively unaffected by the absence of a formal degree, the Fellow Programme in

Management (equivalent to Ph.D), without the formal degree nomenclature, has not been

able to attract enough students required to develop a strong research base in the country in

the field of management education and also address the faculty shortages affecting the

management institutions in the country. IIMs having grown into Institutions of global repute,

it was felt that they may be enabled to award degree to their students, through an Act of

Parliament, which would declare them as Institutes of National importance.

4. In view of the above, it becomes necessary to have a Central Legislation, namely

the Indian Institutes of Management Act, 2017 in the larger interest of students. The degree-

granting power to IIMs will not only enhance the universal acceptability of degrees being

awarded by these premier institutions, but also empower these institutions to attain standards

of global excellence, especially in management research.

5. The Indian Institutes of Management Bill, 2017 inter alia provides for the following,

namely:

(a) with the commencement of this Act, all existing Institutes will become a

body corporate by the existing names;

(b) 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;

shall be based on merit assessed through transparent and reasonable criteria. However,

reservation in admissions will be provided as per Central Educational Institutions

(Reservation in Admission) Act, 2006;

(d) every Institute shall exercise powers and functions like conducting courses

of study, training and research in management and allied subjects, publication,

consultancy, advisory work to advance new knowledge and innovation and to provide

global leadership in management theory and practice, conduct examinations and award

degrees, institute and award fellowships, scholarships, prizes and medals, establish

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

and maintain infrastructure etc., and also do all such things and activities, incidental to

the attainment of the objects of the Institute;

(e) the Director shall be appointed by the Board, out of the panel of names

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

(f) there shall be the Board of Governors as the principal executive body of each

institute. The composition, powers and functions of the Board have been enumerated

in clauses 10 and 11 of the Bill respectively. The Board will be responsible for the

general superintendence, direction and control of the affairs of the Institute. The

powers shall be exercised by the Board as per regulations framed by the Board of

Governors;

(g) there shall be an Academic Council which will be the principal academic

body of each institute and will exercise its powers as per clause 15 of the Bill;

(h) the Director will be the Chief Executive Officer of the Institute and shall

provide leadership to the institute, exercise 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 and be responsible for implementation of the decisions of the Board. His

powers and functions have inter alia been enumerated in clause 16 of the Bill;

(i) there shall be a coordination forum which shall be established with an

eminent person as its Chairman to be selected by a Search-cum-Selection Committee

constituted by the Coordination forum to consider matters of common interest to

these institutes and facilitate the coordination amongst various institutes, sharing of

experiences, ideas and concerns with a view to enhancing the performance of all

Institutes;

(j) the Board of every Institute shall evaluate and review the performance of the

institute within the first three years of establishment and thereafter at least once in

every three years. The evaluation and review report of the Board shall be placed in

public domain.

(k) the Institutes will receive grants in aid, if required. Every institute shall

maintain proper accounts and records, which are to be audited by the Comptroller and

Auditor-General of India.

6. The Bill seeks to provide the twenty existing IIMs independent statutory status

with uniform governance structure and policy framework as also to declare them as Institutions

of National importance and to enable them to grant degrees to their students in the academic

courses conducted by these Institutes.

7. The Notes on clauses explain in detail the various provisions contained in the

Indian Institutes of Management Bill, 2017.

8. The Bill seeks to achieve the above objectives.

NEW DELHI;

PRAKASH JAVDEKAR

The 25th January, 2017.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

Notes on Clauses

Clause 1.––This clause relates to short title and commencement of the proposed

legislation.

Clause 2.––This clause seeks to declare the twenty Indian Institutes of Management

as institutions of national importance.

Clause 3.––This clause contains the definitions of the various expressions used in the

proposed legislation.

Clause 4.––This clause provides for incorporation of the twenty Indian Institutes of

Management under the proposed Bill.

Clause 5.––This clause enumerates the effects of incorporation of the twenty Indian

Institutes of Management.

Clause 6.––This clause declares the objects of the twenty Indian Institutes of

Management to educate and support leaders who can contribute as managers, entrepreneurs,

and stewards of existing and emerging enterprises in the private, public, and social sectors:

to provide management education of high quality and to promote allied area, areas of

knowledge as well as interdisciplinary studies; to support and develop programmes promoting

social and gender equity and to set-up centres for management studies and allied areas.

Clause 7.––This clause enumerates the powers and functions of the twenty Indian

Institutes of Management which includes power 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; to create academic, administrative, technical,

ministerial and other posts under the Institute other than the Director of the Institute and

make appointments thereto.

Clause 8.––This clause provides that the Institutes 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. It also provides for every Institute to make

special provisions for the employment or admission of women, persons with disabilities or

persons belonging to any socially or educationally backward classes of citizens, particularly

the Scheduled Castes and Scheduled Tribes.

Clause 9.––This clause provides that 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 Bill, shall be invested for any purpose other

than for the growth and development of such Institute or for conducting research therein.

The Institute shall also strive to raise funds for attaining self sufficiency and sustainability.

Clause 10.––This clause provides for the constitution of the Board of Governors of

every Institute as the principal executive body of that Institute. It also provides for the

manner of appointment of the Chairperson, by the Board, who shall be an eminent person

distinguished in the field of industry or education or science or technology or management

or public administration.

Clause 11.––This clause enumerates the powers and functions of the Board of

Governors of the Institutes which includes general superintendence, direction and control

of the affairs of the Institute and 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. The

functions of the Board also include an annual review of the performance of the Director, in

the context of the achievements of objects of the Institute.

Clause 12.––This clause provides for Terms of office of, vacancies among, and

allowances payable to members of the Board of Governors.

Clause 13.––This clause provides that the Chairperson may, by notice in writing under

his hand addressed to the Board, resign from his office.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

Clause 14.––This clause provides for the constitution of the Academic Council of the

Institutes which shall be chaired by the Director of the Institute.

Clause 15.––This clause enumerates the powers and functions of the Academic Council

of the Institute which include to specify the criteria and process for admission to courses or

programmes of study offered by the Institute, to specify the academic content of programmes

and courses of study and undertake modifications therein, to specify the academic calendar,

guidelines for conduct of examination and recommend grant of degrees, diplomas and other

academic distinctions or titles etc.

Clause 16.––This clause provides in respect of the Director, who shall be the Chief

Executive Officer of the Institute, the process of appointment, term of office, and manner of

removal etc.

Clause 17.––This clause provides that an enquiry may be initiated against the institute

which has not been functioning as per the provisions and objectives of the Act, the manner

of such enquiry and actions that may be taken on findings of such an enquiry.

Clause 18.––This clause provides for designation of an Officer as Custodian of records,

common seal and funds of the Institute and any other property, by the Board.

Clause 19.––This clause provides that the members of the societies of the Indian

Institute of Management Ahmedabad and Indian Institute of Management Bangalore may

be engaged by the respective Board of Governors of corresponding Institutes, for advisory

assistance to it, by passing a resolution in that behalf.

Clause 20.––This clause provides that the Board may constitute such committees and

other authorities of the Institute and specify the duties and functions of each such committees

and authorities by regulations.

Clause 21.––This clause provides that the Central Government may, after due

appropriation made by Parliament by law in this behalf, pay to every Institute such sums of

money in such manner as it may think fit.

Clause 22.––This clause provides for maintenance of the Fund of the Institute. This

clause also provides for creation of a corpus fund by each institute for long term sustainability

of the Institute, to which shall be credited such per cent. of the net income of the Institute

and donations made specifically towards such corpus fund as the Central Government may

in accordance with the provisions of the Income Tax Act ,1961, notify.

Clause 23.––This clause provides for maintenance of proper accounts of the Institutes

and conduct of audit by the Comptroller and Auditor General of India. This clause also

provides that the accounts of every Institute together with the audit report thereon shall be

forwarded annually to the Central Government and that Government shall cause the same to

be laid before each House of Parliament.

Clause 24.––This clause provides that every Institute shall keep proper updated books

of account with respect to all sums of money received and expended by it and the matters in

respect of which receipt and expenditure takes place, the assets and liabilities of the Institute,

and the properties, movable and immovable of the Institute.

Clause 25.––This clause provides for appointment of auditors including internal auditors

which shall be changed by the Board after every four years.

Clause 26.––This clause provides for submission of the annual report of the Director

to the Board of Governors along with the statement of accounts to reflect the state of affairs

of the Institute.

Clause 27.––This clause provides that the statement of accounts, including the balance

sheet and the statement of income and expenditure, the auditor’s report, the report of the

Director and other documents required to be annexed or attached with such statement, shall

be brought before the Board of Governors of the Institute in its meeting not later than three

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

months, from the conclusion of the financial year. The statement of accounts shall on its

approval by the Board, be published on the website of the Institute.

Clause 28.––This clause provides that the annual report of every Institute shall be

prepared under the directions of the Board, which shall include, among other matters, steps

taken by the Institute towards the fulfillment of its objects and an outcome based assessment

of the research being undertaken in such Institute. The annual report on its approval by the

Board shall be published on the website of the Institute. The annual report of each Institute

shall be submitted to the Central Government who shall, as soon as may be, cause the same

to be laid before both Houses of Parliament.

Clause 29.––This clause provides for establishment of a Coordination Forum for all

the Institutes, chaired by an eminent person to be selected by a Search-cum-Selection-

Committee as may be constituted by the Coordination Forum.

Clause 30.––This clause enumerates the functions of the Coordination Forum which

includes facilitating the sharing of experiences, ideas and concerns with a view to enhancing

the performance of all Institutes, to recommend to the Central Government. It provides for

the Chairperson of the Coordination Forum to preside at the meetings of the Coordination

Forum. It also provides for the Coordination Forum to meet at least once in a calendar year.

Clause 31.––This clause provides that no act of any Institute or the Board or the

Academic Council or any other body set-up under this Act or the regulations, shall be invalid

merely by reason of any vacancy or defect in the constitution thereof or any irregularity in its

procedure not affecting the merits of the case or any defect in the selection, nomination or

appointment of a person acting as a member thereof.

Clause 32.––This clause provides for furnishing of information and returns by the

Institutes to the Central government.

Clause 33.––This clause provides for applicability of the provisions of the Right to

Information Act, 2005 to each Institute, including Institutes established in public-private

partnership, as if it were a public authority defined in clause (h) of section 2 of the Right to

Information Act, 2005.

Clause 34.––This clause empowers the Central Government to make rules for carrying

out the provisions of this Act.

Clause 35.––This clause provides for the manner in which, and subjects on which the

Board shall make regulations under this Act.

Clause 36.––This clause provides for the manner in which and the subjects on which

the Ordinance shall be made by the Academic Council of the Institute.

Clause 37.––This clause provides that every rule made by the Central Government

and first regulation made by the Board under this Bill shall be laid as soon as may be after it

is made, before each House of Parliament.

Clause 38.––This clause empowers the Central Government to remove any difficulty

that may arise in giving effect to the provisions of the Bill within a period of three years of

commencement of the Act.

Clause 39.––This clause provides for transitional provisions with respect to the Board,

Academic Council or Facility Council, etc. This clause also provides that until the first

regulations are made under this Bill, the rules, and bye-laws of each Institute as in force,

immediately before the commencement of this Bill, shall continue to apply to the Institute in

so far as they are not inconsistent with the provisions of this Bill and further that the Central

Government may, without prejudice to the provisions of this Bill, if it considers so necessary

and expedient, by notification.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

The Indian Institutes of Management Bill, 2017 proposes to declare the existing twenty

Indian Institutes of Management as Institutes of National importance. The said institutes are

at present given budgetary support for their establishment or construction initially till they

become self sufficient, which will continue to be given to them after they will be declared as

Institute of National importance under this Act. However, there is no additional financial

implication on account of this Bill as it only proposes to declare them as Institutes of

National importance for the purpose of conferring degree granting powers and to provide for

complete autonomy to the institutions, combined with adequate accountability.

————

MEMORANDUM REGARDING DELEGATED LEGISLATION

Sub-clause (1) of clause 34 of the Indian Institute of Management Bill, 2017 empowers

the Central Government to make rules for carrying out the provisions of the proposed

legislation.

2. Sub-clause (2) of the said clause provides that such rules are for the matters relating

to (a) such other powers and duties of the Board under clause (w) of sub-section (2) of

section 11; (b) the term and conditions of service of the Director under sub-section (2) of

section 16; (c) the traveling and such other allowances payable to the members of the

Coordination Forum for attending its meetings or its Committees under sub-section (4) of

section 29; and (d) any other matter which is to be or may be, prescribed or in respect of

which provision is to be made by the Central Government by rules.

3. Clause 35 (1) empowers the Board to make regulations not inconsistent with the Act

and the rules made thereunder to carry out the provisions of the proposed legislation.

4. Sub-clause (2) of the said clause provides that such regulation may for the matters,

inter alia, relating to (a) tenure, remuneration and terms and conditions of employees of

existing Institute under clause (d) of section 5; (b) admission of candidates to the various

courses of study under clause (b) of section 7; (c) the manner of nominating the members

from the faculty of respective Institutes under clause (e) of sub-section (2) of section 10;

(d) the conferment of honorary degrees under clause (g) of sub-section (2) of section 11; (e)

the qualifications, experience and the manner of selection of the independent agency or

group of experts under sub-section (5) of section 11; (f) allowances of the members of the

Board for attending meetings under sub-section (6) of section 12; (g) such other powers and

functions of the Academic Council under sub-section (2) of section 15; (h) the powers and

duties of the Director under sub-section (4) of section 16; (i) constitution of such committees

and other authorities of the Institute and their duties and functions under sub-section (1) of

section 20; (j) the manner of depositing or investing the moneys credited to the fund of every

Institute under sub-section (w) of section 22; (k) the manner of application of the Fund of

the Institute under sub-section (4) of section 22; and (l) any other matter which is to be or

may be, specified by regulations.

5. The matters in respect of which the rules and regulations may be made under the

aforesaid provisions are matters of procedure and administrative 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.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

BILL NO. 22 OF 2017

A Bill to repeal certain enactments and to amend certain other enactments.

BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as

follows:—

1. This Act may be called the Repealing and Amending Act, 2017.

2. The enactments specified in the First Schedule are hereby repealed to the extent

mentioned in the fourth column thereof.

3. The enactments specified in the Second Schedule are hereby amended to the extent

and in the manner mentioned in the fourth column thereof.

4.The repeal by this Act of any enactment shall not affect any other enactment in

which the repealed enactment has been applied, incorporated or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of anything

already done or suffered, or any right, title, obligation or liability already acquired, accrued or

incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or

from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted,

or the proof of any past act or thing;

Short title.

Repeal of

certain

enactments.

Amendment

of certain

enactments.

Savings.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

THE FIRST SCHEDULE

(See section 2)

REPEALS

Year

No.

Short title

Extent of repeal

1850

XXXVII

The Public Servants (Inquiries) Act, 1850

The whole.

1852

VIII

The Sheriffs' Fees Act, 1852

The whole.

1866

XXI

The Converts' Marriage Dissolution Act, 1866

The whole.

1867

The Ganges Tolls Act, 1867

The whole.

1892

The Marriages' Validation Act, 1892

The whole.

1897

The Public Servants (Inquiries) Amendment Act, 1897

The whole.

1897

The Repealing and Amending Act, 1897

The whole.

1897

XIV

The Indian Short Titles Act, 1897

The whole.

1899

XXIII

The Church of Scotland Kirk Sessions Act, 1899

The whole.

1901

The Amending Act, 1901

The whole.

1903

The Amending Act, 1903

The whole.

1928

XII

The Hindu Inheritance (Removal of Disabilities) Act, 1928

The whole.

1929

XXI

The Transfer of Property (Amendment) Supplementary Act, 1929

So much as is not

repealed.

1934

XXVII

The Assam Criminal Law Amendment (Supplementary) Act, 1934

The whole.

1935

XIII

The Jubbulpore and Chhattisgarh Divisions (Divorce Proceedings Validation) Act, 1935

The whole.

1936

The Decrees and Orders Validating Act, 1936

The whole.

1936

XVI

The Bangalore Marriages Validating Act, 1936

The whole.

1938

The Hindu Women's Right to Property (Amendment) Act, 1938

The whole.

1939

XXIX

The Indian Tariff (Fourth Amendment) Act, 1939

The whole.

1946

XXII

The Mica Mines Labour Welfare Fund Act, 1946

The whole.

1948

The Indian Matrimonial Causes (War Marriages) Act, 1948

The whole.

1948

The Imperial Library (Change of Name) Act, 1948

The whole.

1950

XXXIII

The Opium and Revenue Laws (Extension of Application) Act, 1950

The whole.

1951

The Code of Criminal Procedure (Amendment) Act, 1951

So much as is not

repealed.

1951

The Code of Civil Procedure (Amendment) Act, 1951

So much as is not

repealed.

1953

The Administration of Evacuee Property (Amendment) Act, 1953

The whole.

1954

The Ancient and Historical Monuments and Archaeological Sites and Remains

(Declaration of National Importance) Amendment Act, 1953

The whole.

1954

The Administration of Evacuee Property (Amendment) Act, 1954

The whole.

1955

The Code of Criminal Procedure (Amendment) Act, 1955

So much as is not

repealed.

1956

The Sales-Tax Laws Validation Act, 1956

The whole.

1956

The Representation of the People (Second Amendment) Act, 1956

The whole.

1956

The Code of Civil Procedure (Amendment) Act, 1956

So much as is not

repealed.

1956

The Ancient and Historical Monuments and Archaeological Sites and Remains

The whole.

(Declaration of National Importance) Amendment Act, 1956

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

1956

The Administration of Evacuee Property (Amendment) Act, 1956

The whole.

1956

The Young Persons (Harmful Publications) Act, 1956

The whole.

1956

100

The Motor Vehicles (Amendment) Act, 1956

The whole.

1959

The Central Excises and Salt (Amendment) Act, 1959

So much as is not

repealed.

1959

The Criminal Law (Amendment) Act, 1959

So much as is not

repealed.

1959

The Miscellaneous Personal Laws (Extension) Act, 1959

The whole.

1959

The Mineral Oils (Additional Duties of Excise and Customs) Amendment Act, 1959

So much as is not

repealed.

1959

The Married Women's Property (Extension) Act, 1959

The whole.

1960

The Displaced Persons (Compensation and Rehabilitation) Amendment Act, 1960

So much as is not

repealed.

1960

The Motor Vehicles (Amendment) Act, 1960

So much as is not

repealed.

1960

The Hindu Marriages (Validation of Proceedings) Act, 1960

The whole.

1960

The Central Excises (Conversion to Metric Units) Act, 1960

So much as is not

repealed.

1960

The Customs Duties and Cesses (Conversion to Metric Units) Act, 1960

So much as is not

repealed.

1960

The British Statutes (Application to India) Repeal Act, 1960

The whole.

1966

The Representation of the People (Amendment) Act, 1966

So much as is not

repealed.

1969

The Punjab Legislative Council (Abolition) Act, 1969

The whole.

1971

The Bengal Finance (Sales Tax) (Delhi Validation of Appointments and

The whole.

Proceedings) Act, 1971

1971

The Coal Bearing Areas (Acquisition and Development) Amendment and

The whole.

Validation Act, 1971

1972

The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972

The whole.

1976

The Delhi Sales Tax (Amendment and Validation) Act, 1976

The whole.

1980

The Code of Criminal Procedure (Amendment) Act, 1980

So much as is not

repealed.

1981

The Cine-workers Welfare Cess Act, 1981

The whole.

1983

The Delegated Legislation Provisions (Amendment) Act, 1983

The whole.

1984

The Government of Union Territories (Amendment) Act, 1984

So much as is not

repealed.

1985

The Tea Companies (Acquisition and Transfer of Sick Tea Units) Act, 1985

The whole.

1985

The Banking Laws (Amendment) Act, 1985

So much as is not

repealed.

1986

The Additional Duties of Excise (Textiles and Textile Articles) Amendment Act, 1985

The whole.

1986

The Additional Duties of Excise (Goods of Special Importance) Second Amendment

The whole.

Act, 1985

1986

The Customs Tariff (Amendment) Act, 1985

The whole.

1986

The Administrative Tribunals (Amendment) Act, 1986

So much as is not

repealed.

1986

The Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986

The whole.

1999

The Contingency Fund of India (Amendment) Act, 1999

The whole.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

1999

The Securities Laws (Amendment) Act, 1999

The whole.

1999

The Securities Laws (Second Amendment) Act, 1999

The whole.

1999

The Vice-President's Pension (Amendment) Act, 1999

The whole.

2000

The President's Emoluments and Pension (Amendment) Act, 2000

The whole.

2000

The Protection of Human Rights (Amendment) Act, 2000

The whole.

2001

The Colonial Prisoners Removal (Repeal) Act, 2001

The whole.

2001

The Industrial Disputes (Banking Companies) Decision (Repeal) Act, 2001

The whole.

2001

The Judicial Administration Laws (Repeal) Act, 2001

The whole.

2001

The Indian Railway Companies (Repeal) Act, 2001

The whole.

2001

The Railway Companies (Substitution of Parties in Civil Proceedings) Repeal Act, 2001

The whole.

2001

The Hyderabad Export Duties (Validation) Repeal Act, 2001

The whole.

2001

The Code of Criminal Procedure (Amendment) Act, 2001

The whole.

2002

The St. John Ambulance Association (India) Transfer of Funds (Repeal) Act, 2002

The whole.

2002

The Code of Civil Procedure (Amendment) Act, 2002

The whole.

2002

The Vice-President's Pension (Amendment) Act, 2002

The whole.

2002

The National Institute of Pharmaceutical Education and Research (Amendment) Act, 2002

The whole.

2002

The Securities and Exchange Board of India (Amendment) Act, 2002

The whole.

2002

The North-Eastern Council (Amendment) Act, 2002

The whole.

2003

The Customs Tariff (Amendment) Act, 2003

The whole.

2003

The Prevention of Insults to National Honour (Amendment) Act, 2003

The whole.

2004

The Uttar Pradesh Reorganisation (Amendment) Act, 2003

The whole.

2004

The Special Tribunals (Supplementary Provisions) Repeal Act, 2004

The whole.

2004

The Unlawful Activities (Prevention) Amendment Act, 2004

The whole.

2005

The Securities Laws (Amendment) Act, 2004

The whole.

2005

The Central Excise Tariff (Amendment) Act, 2004

The whole.

2005

The Hire-purchase (Repeal) Act, 2005

The whole.

2005

The Prevention of Insults to National Honour (Amendment) Act, 2005

The whole.

2006

The Khadi and Village Industries Commission (Amendment) Act, 2006

The whole.

2006

The Delhi Special Police Establishment (Amendment) Act, 2006

The whole.

2006

The Union Duties of Excise (Electricity) Distribution Repeal Act, 2006

The whole.

2006

The Protection of Human Rights (Amendment) Act, 2006

The whole.

2006

The Jallianwala Bagh National Memorial (Amendment) Act, 2006

The whole.

2007

The Administrative Tribunals (Amendment) Act, 2007

The whole.

2007

The Taxation Laws (Amendment) Act, 2007

Sections 9 to 11.

2007

The National Institute of Pharmaceutical Education and Research (Amendment) Act, 2007

The whole.

2007

The Securities Contracts (Regulation) Amendment Act, 2007

The whole.

2008

The President's Emoluments and Pension (Amendment) Act, 2008

The whole.

2008

The Vice-President's Pension (Amendment) Act, 2008

The whole.

2008

The Unlawful Activities (Prevention) Amendment Act, 2008

The whole.

2009

The Governors (Emoluments, Allowances and Privileges) Amendment Act, 2008

The whole.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

THE SECOND SCHEDULE

(See section 3)

AMENDMENTS

Year

No.

Short title

Amendments

2007

The National Institutes of Technology, Science

In clause (d) of section 3, the words "as the

Education and Research Act, 2007

case may be" shall be omitted.

2009

The Prevention and Control of Infectious and

In sub-section (1) of section 1, for the word

Contagious Diseases in Animals Act, 2009

and figures "Bill, 2009", the word and figures

"Act, 2009" shall be substituted.

2009

The Right of Children to Free and Compulsory

In section 1, for the marginal heading, the

Education Act, 2009

marginal heading "Short title, extent,

application and commencement" shall be

substituted.