Supreme Court issues notice to IIMs on fee cut

Giving a new twist to the fee-cut controversy, the Supreme Court yesterday issued notices to all the six Indian Institutes of Management (IIMs) making it clear that it would examine the locus standi of the petitioners challenging the Centre's decision of reducing the annual fee of these institutes from Rs 150,000 to Rs 30,000.

"We will first look into the locus standi of the petitioners, peruse the balance sheets of the IIMs and ascertain the views of the institutes," a three-judge Bench, headed by Chief Justice V N Khare, said and posted a public interest litigation for further hearing on April 16.

Appearing for the Centre, additional solicitor-general Mukul Rohtagi countered the petitioners, Sandeep Parekh and others, by saying: "When five out of the six IIMs have accepted the Human Resources Development Ministry's decision on fee cut, who are these petitioners to question it."

"The government is agreeable to the suggestion of the IIM-Ahemdabad chairman N Narayanmurthy's suggestion for a dialouge on the issue and will start the process immediately after the elections," he said.

Completing his submission, Rohtagi asked: "If after the dialogue even IIM-A accepts the fee cut decision, that will be the end of the matter."

However, appearing for the petitioner, senior advocate Harish Salve questioned the motive of the government in slashing the fees and said public interest demands that the government unfolds its entire gameplan - whether it was to dilute the autonomy of these institutions or not.

Countering salve, Rohtagi said: "If the institutes, headed by eminent personalities, do not see any gameplan and agree to the fee-cut decision, who are these petitioners and what is their locus standi to challenge the decision."

The Bench, cutting the debate short, posted the matter for further hearing on April 16 and said on that day "we will look into the locus standi of the petitioners as well the balance sheet of the institutes for the last 10 years."

When Rohtagi said the IIMs should not be impleaded as parties to the petition at this stage, the Bench clarified that they have not been impleaded but the court was issuing notice to ascertain their views.

The Centre said the government was fulfiling its commitment to make good the shortfall in the funds of the IIMs arising from the cut in the fees and added that recently it has given Rs 4 crore to one of the IIMs and Rs 1 crore each to two others.

The apex court had earlier disposed of the pil when the government assured it that the february 5 decision to reduce the fees would not amount to interference in the functioning of the institutes.