Section 5 in The Indian Institute of Management Act, 2017
Title: Effect of incorporation of Institutes
On and from the commencement of this Act,—
(a) any reference to an existing Institute in any contract or other instrument shall be deemed as a reference to the corresponding Institute;
(b) all properties, movable and immovable, of or belonging to every existing Institute shall vest in the corresponding Institute;
(c) all rights and debts and other liabilities of every existing Institute shall be transferred to, and be the rights and liabilities of, the corresponding Institute;
(d) every person employed by every existing Institute immediately before such commencement shall hold his office or service in the corresponding Institute, with the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held had this Act not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and terms and conditions are duly altered by regulations:
Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee, or, if no provision is made therein in this behalf, on payment, to him by the Institute, of a compensation equivalent to three months' remuneration in case of permanent employee and one months' remuneration in the case of other employee:
Provided further that any reference, by whatever form of words, to the Director, and other officers of an existing Institute under any law for the time being in force, or in any instrument or other document, shall be construed as a reference to the Director, and other officers of the corresponding Institutes;
(e) every person pursuing, before commencement of this Act, any academic or research course in every existing Institute, shall be deemed to have migrated and registered with the corresponding Institute, on such commencement at the same level of course in the Institute from which such person migrated;
(f) all suits and other legal proceedings instituted or which could have been instituted by or against an existing Institute, immediately before the commencement of this Act, shall be continued or instituted by or against the corresponding Institute.
Title: Objects of Institutes
Each Institute shall have the following objects, namely:--
(a) to educate and support leaders who can contribute as professional managers, entrepreneurs, and stewards of existing and emerging enterprises in the private, public, and social sectors;
(b) to carry out research, publication, consultancy and advisory work to advance new knowledge and innovation and to provide global leadership in management theory and practice:
Provided that research so conducted shall also be directed towards such areas of study which shall enhance inclusive, equitable and sustainable national development goals as enshrined in the objects of the Act;
(c) to provide management education of high quality and to promote allied areas of knowledge as well as interdisciplinary studies;
(d) to sensitise management education to the vision of inclusive, equitable and sustainable national development goals in order to contribute holistically to Society;
(e) to support and develop programmes promoting social and gender equity;
(f) to develop educational programmes and faculties that advance the cause of education, teaching and learning, across disciplines;
(g) to set-up centres for management studies and allied areas;
(h) to support and collaborate with management institutions and other educational institutions in India;
(i) to co-operate and collaborate with educational or management institutions in other countries to extend the interests of management education and research.
Title: Powers and functions of Institute
Subject to the provisions of this Act, every Institute shall exercise the following powers and perform the following functions, namely:—
(a) to carry out the administration and management of the Institutes;
(b) to provide by regulations for the admission of candidates to the various courses of study in conformity with the laws for the time being in force;
(c) to specify and conduct courses of study, training and research in management and allied subjects and document, and disseminate knowledge thereof;
(d) to evolve innovative management education pedagogy aligned to dynamic global management practices;
(e) to conduct examinations and to establish processes for evaluation and performance assessment through a fair and transparent system;
(f) to grant degrees, diplomas and other academic distinctions or titles and to institute and award fellowships, scholarships, prizes and medals, honorary awards and other distinctions;
(g) to lower the cost of education and to enhance the reach of the education by use of information and communication technology and other innovative methods;
(h) to establish and maintain such infrastructure as may be necessary;
(i) to determine, specify and receive payment of, fees and other charges as the Institute may deem fit, from students and any other person, institution or body corporate for instruction and other services, including training, consultancy and advisory services, provided by the Institute;
(j) to acquire, hold and deal with the property belonging to or vested in the Institute, with the approval of the Board, and in case of immovable property, under prior intimation to the Central Government, for advancing the objects of the Institute subject to the condition that such property is not obtained wholly or partly from the State Government or the Central Government funds:
Provided that where the land for the Institute has been provided free of cost by a State Government or the Central Government such land may be disposed of only with the prior approval of the Central Government;
(k) to create academic, administrative, technical, ministerial and other posts under the Institute other than the post of Director of the Institute and to make appointments thereto;
(l) to appoint committees for the disposal of any business of the Institute or for tendering advice in any matter pertaining to the Institute;
(m) to receive grants, gifts and contributions and to have custody of the funds including internally generated funds of the Institute to meet the expenses, including capital expenditure of the Institute including expenses incurred in the exercise of its powers and discharge of its functions;
(n) to create partnership, affiliation and other classes of professional or honorary or technical membership or office as the Institute may consider necessary;
(o) to perform such other functions as may be necessary for carrying out the objects of the Institutes;
(p) to do all such things and activities, incidental to the attainment of all or any of the objects of the Institute.
Title: Institutes to be open to all irrespective of sex, race, creed, caste or class
(1) Every Institute shall be open to all persons irrespective of sex, race, creed, caste or class, and no test or condition shall be imposed as to religious belief or profession in admitting or appointing members, students, teachers or workers or in any other connection whatsoever.
(2) No bequest, donation or transfer of any property shall be accepted by any Institute which in the opinion of the Board involves conditions or obligations opposed to the spirit and object of this section.
(3) The admission to every academic course or programme of study in each Institute shall be based on merit assessed through transparent and reasonable criteria disclosed through its prospectus, prior to the commencement of the process of admission by such Institute:
Provided that nothing in this section shall be deemed to prevent the Institute from making special provisions for the employment or admission of women, persons with disabilities or for persons belonging to any socially and educationally backward classes of citizens and, in particular, for the Scheduled Castes and the Scheduled Tribes:
Provided further that every such Institute shall be a Central Educational Institution for the purposes of the Central Educational Institutions (Reservation in Admission) Act, 2006 (5 of 2007).
Title: Institute to be not-for-profit legal entity
(1) Every Institute shall be a not-for-profit legal entity and no part of the surplus, if any, in revenue of such Institute, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such Institute or for conducting research therein.
(2) Every Institute shall strive to raise funds for self-sufficiency and sustainability.