IIM’s 1-Year Executive MBA Violates UGC Norms: Says Union HRD Ministry

The Union HRD Ministry forwarded the message to all the Indian Institutes of Management with regards to 1-year MBA programs initiated by the premier institutes.

The MHRD had repeatedly objected in 2018 and 2019  through official notification against offering this course.

Despite this communication, the top IIMs including IIM Ahmedabad, IIM Bangalore, IIM Calcutta and IIM Indore all continued to offer this course.

The ministry has further stated such courses violate all regulations laid by the University Grants Commission (UGC). Thus, asking them to take corrective actions on stopping these courses, as begun a year ago.

On Friday, July 3, 2020, HRD Ministry communicated to the IIM Directors stating all legal opinions from the law ministry. The official notification said, “IIMs have been awarding degrees such as the one year executive MBA degree in violation of the UGC regulations”.

As of now, the IIMs are advised to offer courses as per the University Grants Commission Act 1956. The UGC regulations grant universities or educational institutions to offer postgraduate courses of 2 years duration.

Also, considering COVID-19 crisis, IIMs will not revise fees for 2020, says the latest press release. 

This is to ensure that a 3+2 format of the education system is followed. Additionally, the 1-year programs are predominantly known as Postgraduate Diploma. This is supposedly unlike western education system where a 4+1 system persists.

Meanwhile, IIM Bangalore’s 1-year Executive MBA ranked among top 50 in QS Rankings 2020. 

Considering the IIM’s one year postgraduate programs, these had been designed to match global competition. 

In recent years, this issue has become the talk of the town; IIMs being exemplary in management studies in India. The 2017 IIM Act granted autonomy to the institute as well as degree-granting power. 

As a result, the board of governors of top IIMs set new regulations for offering 1 year MBA courses. 

The objections gradually gained grounds once the law ministry on approving stated such activities violated UGC norms. It also said, even though they have been granted the power to offer diploma, postgraduate and other academic distinctions, IIM Act 2017 does not empower them to create new regulations.

The Law Ministry further opined, Section 7(f) and 11(2) (F) under the IIM Act does not grant power to offer degrees or make regulations in this regard as well. IIM Act Section 7(b) permits offering courses to students in compliance with laws in force. 

The Department of Legal Affairs affirmed: “for an award of MBA degree to participants of one year Post Graduate Programme in Management in Executive, the institutes are required to act in conformity of UGC Act, 1956”.

HRD Ministry wrote to IIMs, “ all IIMs are directed to act as per the provisions of the IIM Act, 2017 and the interpretation of Department of Legal Affairs that in awarding a degree, the institutes are required to act in conformity with UGC Act, 1956”.