The Indian Institute of Management, Bangalore faculty has said that it is deeply concerned about the fee reduction recommended by the Ministry of Human Resources Development.

"We do not face the problem of a deserving students not joining IIM-B on financial grounds. There are more than enough scholarships and loans available for all admitted students. The proposed reduction in the fee will only result in subsidising sections of society that do not require any subsidy whatsoever. On the other hand, the fee reduction will considerably weaken a well-functioning, world-class institution in our country."

The IIM Controversy: Complete Coverage

The faculty has compared the reduction of fee to the salary structure of these students. "The average compensation was Rs 611,000. This excluded the 20-odd students who were placed overseas and got much higher salaries. The median salary was Rs 600,000.

"In principle, such students should not be more subsidised than they already are. In fact, several thoughtful students themselves accept this view. Currently about 60 per cent of the program cost is subsidised. The policy of drastically reducing fees essentially 'subsidises the rich' - or rather, those who are going to become rich after graduation - and is unconscionable."

Reiterating its past experience with MHRD, the faculty has said that the promise of a grant to meet the shortfall following any reduction in fees is unlikely to materialise.

"This will jeopardise the institute's financial position. One reason is that the finance ministry may not agree to release additional grants as has happened in the past with regard to the corpus funds."

The faculty said the sequence of events which include the setting up of the Bharat Shiksha Kosh, taking full control of the directors' selections, asking IIM-B to reduce its corpus fund, seeking to take control of the CAT exam, exercising control of funded research projects in collaboration with other Universities, press reports that IIMs will be asked not to conduct group discussions and interviews to admit students, the rejection of two well-thought out MoUs drafted by the faculty, only go out to suggest that the issue at hand is not just about fees, but has a larger ambit.