IIM fee cut to stay, SC records govt's stand not to interfere

New Delhi, Feb. 27: In a blow to opponents of the drastic cut in the admission fee of six Indian Institutes of Management (IIMs), the Supreme Court on Friday endorsed the Centre’s decision after it promised not to interfere in the running of these business schools of excellence.

A bench comprising chief justice V.N. Khare, justice S.B. Sinha and justice S.H. Kapadia recorded the statement of Additional Solicitor General Mukul Rohtagi that government would grant additional funds to make good the deficit arising from the reduction of the fee from Rs 1.5 lakhs to Rs 30,000.

Rohtagi said that reduction of the fee would not in any way lead to interference in the running of these institutions of excellence.

The bench, in view of the undertaking given by the government, disposed off a public interest litigation filed by three members of IIM alumni challenging the February 4 decision of HRD Ministry headed by Murli Manohar Joshi.

Appearing for the petitioners, senior advocate Harish Salve said that the fee cut was not a major issue as long as the government did not intend to tinker with the management of these institutions of global repute.

A major controversy was erupted as the government’s decision was severely criticised by leading lights from the corporate sector including Infosys chairman and chief mentor N.R. Narayanmurthi and HLL chief M.S. Banga.

Narayanmurthi, who heads IIM-Ahmedabad, had said that the IIMs were keeping all its legal options open to challenge the fee-cut decision. (PTI)