The first fissures in the ranks of the Indian Institutes of Management have appeared with IIM-Lucknow deciding to abide by the human resources development ministry's directive to slash fees by 80 per cent. There are also indications that IIM Calcutta, Bangalore, Kozhikode and Indore may fall in line.

The move is a shot in the arm for the ministry ahead of the Supreme Court hearing on the issue on Friday.

In a resolution passed last week, IIM-Lucknow decided to implement the fee cut as the government had agreed to meet any shortfall in funds arising out of the move, sources said.

• The IIM Controversy: Complete Coverage

According to sources in IIM-Calcutta, a final decision has, however, not yet been taken. They said the institute would have little option but to cut fees.

"So far, there has been no move to challenge the ministry's order either on our own or along with the other institutes," a source said.

While the IIM-Calcutta board is scheduled to meet on March 26 to take a final view, IIM-Bangalore has convened a board meeting on March 27 to discuss the issue.

"The IIM-Lucknow move has come at a wrong time, especially since the Faculty Council of IIM-Bangalore has passed a resolution criticising the fee cut; the IIM-Calcutta faculty has released a white paper on the issue for the public; and the IIM-Ahmedabad faculty is exploring the possibilities of taking legal recourse. If IIM-Kozhikode and IIM-Indore follow IIM-Lucknow, which looks likely, the rest three will be asked to fall in line," said a senior advocate of the Gujarat High Court. 

The IIM-Lucknow resolution to implement the fee cut might come up during Friday's hearing. The institute's Director, Devi Singh, could not be contacted for comments despite repeated attempts.

"We were the first institute to sign a memorandum of understanding (MoU) with the ministry, and this decision is just a fallout of the MoU," said a source close to IIM-Lucknow.

The IIM-Lucknow decision has caused much apprehension and anxiety among society and board members of the three big Indian Institutes of Management.

"Though even a few days ago this appeared to be a fight only between the Indian Institute of Management-Ahmedabad and the ministry, with the faculty of IIM-Bangalore and IIM-Calcutta joining in, there is a well-synchronised and well-orchestrated movement initiated by the three big institutes to defeat their common enemy, the ministry. But with IIM-Lucknow deciding to implement the fee cut, we need to think of a new way to defend our decision against the cut," said a member of the IIM-A Society.