In the corridors of one of India’s premier management institutes, a quiet storm was brewing. Just days before he resigned as the Director of the Indian Institute of Management Raipur (IIM Raipur), Ram Kumar Kakani received a letter from the Ministry of Education — one that would define the end of his tenure. The Ministry told him, in no uncertain terms, that he was “bound to follow and implement the decisions” of the Board of Governors.
That letter, dated July 11, arrived ten days before Kakani stepped down on July 21, citing concerns over “administrative autonomy and operational integrity.” It revealed a clear stance: the Ministry had chosen to side with the Board in an ongoing tug-of-war over executive powers under the IIM Act, 2017.
A Battle for Control
According to documents reviewed by The Indian Express, the conflict wasn’t about personal rivalry — it was about governance. Kakani believed that the Board Chairperson was overstepping, taking over executive functions that, by statute, rested with the Director. On June 13, he wrote to the Ministry, warning that such interference compromised the autonomy that the IIM Act was supposed to guarantee.
His concerns weren’t isolated. Over the past five years, three IIM Directors, including two from IIM Calcutta, have resigned citing similar tensions with their Boards. The pattern suggests a deeper structural issue — a gap between institutional autonomy and the oversight powers vested in the Board by the 2017 Act.
The HR Policy Conflict at IIM Raipur
The breaking point came over disciplinary action against a faculty member accused of academic impropriety. Kakani initiated proceedings, but the Chhattisgarh High Court quashed them, ruling that the Board — not the Director — was the appointing authority under the law.
Kakani countered that the faculty member had been appointed in 2013, under an older HR policy where the Director had full authority. The Ministry, however, pointed out that IIM Raipur’s 2015 HR policy predated the IIM Act and was thus “not in line” with current regulations.
The Ministry emphasized that, under IIM Raipur’s 2021 regulations, faculty appointments required Board approval — and directed that the outdated HR policy be “rectified at the earliest.”
In essence, the Ministry reaffirmed that “the Director is bound to follow and implement the decisions of the Board.”
Board’s Counter to the Ministry
Meanwhile, the Board wasn’t silent either. On July 4, it wrote to the Higher Education Secretary, accusing the Director of acting “unilaterally” and making it “impossible for the Board to discharge its role” as defined under the IIM Act.
The letter, signed by nine Board members including Chairperson Puneet Dalmia, claimed that despite the High Court’s ruling, Kakani had suspended the faculty member and even appealed the court’s order — without Board approval.
“With the Director refusing to discuss the High Court rulings in a Board meeting,” the letter stated, “the Board was forced to pass a circular resolution dissociating itself from his arbitrary and unilateral actions.”
The Board sought the Ministry’s advice on how to restore “effective supervision and control” over institute affairs — further deepening the rift.
Autonomy Under Strain
By mid-July, the lines were clearly drawn. The Ministry had taken the Board’s side, and Kakani’s vision of institutional autonomy seemed incompatible with the new order. Ten days later, he resigned — two years before his term was set to end.
Neither Kakani nor the Board Chairperson, Puneet Dalmia (MD and CEO, Dalmia Bharat Group), responded to The Indian Express’s questions. But the silence speaks volumes.
What happened at IIM Raipur reflects a larger pattern across India’s management institutes — a growing tension between autonomy and accountability. The IIM Act was meant to empower institutions; instead, it has created new lines of authority where Directors increasingly find themselves answerable not to academic principles, but to Boards aligned with the government’s directives.
For now, the resignation of Ram Kumar Kakani stands as another reminder that even India’s top business schools aren’t immune to governance clashes — where the battle for autonomy often comes at a personal cost.
Also Read: https://indianexpress.com/article/cities/delhi/delhi-news-live-updates-aqi-very-poor-cloud-seeding-rekha-gupta-10335281/?ref=rhs_live_blog_education
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