HRD Ministry threatens to sack IIM-A Society

Ministry denies pressure tactics, says Society's charges motivated.

The fight between the ministry of human resources development (HRD) and the Indian Institute of Management-Ahmedabad (IIM-A) escalated with the government threatening to dismiss or supersede the IIM-A Society, through which the institute was formed in 1961, on the issue of fee cut.

At the society's meeting yesterday, the two ministry nominees, joint secretary V S Pandey and financial adviser V Piparsania, asked the other members to "fall in line" with the government on the fee cut.

Some IIM-A Society members tried to reason with them saying the best place to settle the matter was in court since they differed with the government on the issue. The society then proceeded to move a resolution to that effect.

The IIM-A Society comprises 154 members, including 133 donor members, 25 ex-officio members and four government representatives.

According to Prafull Anilbhai, one of the donor members who attended the meeting, Pandey and Piparsenia said "seeking judicial settlement amounted to confrontation with the government".

Speaking at a press conference here, Anilbhai said after the society took its stand, Pande and Piparsenia threatened that the government had wider powers and it could supersede or dismiss the society if legal recourse was taken.

When contacted, Pandey told Business Standard that there were differences on the issue but he did not put pressure on the members. As a government nominee, he only reiterated the ministry's point of view on the fee structure, he said.

Ministry sources said the charges made by the society members were motivated.

Anilbhai, however, said the members were upset by the "explicit threats and unwarranted remarks" made by the ministry duo.

He said the donor members pointed out at the meeting that as per the memorandum of association of the society, under which the institute was formed, the right to decide the fees vested with the society and this right had been exercised judiciously all these years keeping in mind access, affordability, quality of education and long-term viability of the institute.

Anilbhai also quoted Pandey as saying fees should not be decided by the society or the board of IIM-A but by the ministry alone.

The details of the meeting, a copy of which is available with Business Standard, also reveal that Pandey told IIM-A Director Bakul Dholakia that action would be initiated against him for not keeping the board of governors of the institute and the society informed about the government's thinking on the fee revision issue.

The resolution on legal recourse was, however, not passed as the chairman of the meeting, Shrenik Lalbhai (one of the founding members of the Lalbhai group), did not find the atmosphere appropriate and adjourned the meeting.

Anil Bakeri, chairman of the Bakeri group and a member of the IIM-A Society, said, "It was an unfortunate incident. A premier institute like the IIM-A should not be seeing such things. We will decide on our future course of action in the next meeting as this did not end with a resolution."

Anilbhai, however, said the society had not yet made up its mind on the legal course to be taken and had not specified a timeframe.

At a flash point

• IIM-A Society members say they were told to "fall in line" with the government on the fee cut
  
• Govt nominees say fees should not be decided by the society or the board of IIM-A but by the ministry alone
  
• Govt threatens action against IIM-A Director Bakul Dholakia
  
• Society plans to take legal recourse