Date:09/04/2004 URL: http://www.thehindu.com/2004/04/09/stories/2004040904241400.htm

National

SC notice to IIMs on fee cut and autonomy

By Our Legal Correspondent

NEW DELHI, APRIL 8. The Supreme Court today issued notice to the six Indian Institutes of Management (IIMs) for making them parties in the on-going proceedings but made it clear that it would examine the locus standi of the petitioners to challenge the Centre's decision reducing the annual fee from Rs. 1.5 lakhs to Rs. 30,000.

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

Appearing for the Centre, the Additional Solicitor-General, Mukul Rohtagi, said: "When five out of the six IIMs have accepted the HRD Ministry's decision on fee cut, who are these petitioners to question it. The Government is agreeable to the suggestion of the IIM-Ahmedabad Chairman, N. Narayanmurthy's suggestion for a dialogue on the issue and will start the dialogue process immediately after the completion of the elections. If after the dialogue even the IIM-A accepts the fee cut decision, that would be the end of the matter."

However, appearing for the petitioner, Sandeep Parekh, senior advocate Harish Salve questioned the Government's motive in slashing the fee. Public interest demanded that the Government unfold its entire "game plan," whether it was to dilute the autonomy of the IIMs or only fee reduction, he said.

The court then made it clear that even if all the six IIMs agreed to the Centre's decision on fee reduction, it would still examine the implications of such a move on their autonomy.