IIM Indore Chairman Resignation: Existence of fee collecting agency questionable

 | April 26,2012 01:15 pm IST

By now almost every one of us know about the resignation of chairman of the Board of Governors of Indian Institute of Management, Indore, L N Jhunjhunwala, who is also an industrialist and chairman of LNJ Bhilwara Group. Following the differences with director N Ravichandran, Jhunjhunwala resigned April 12 soon after which another board member M N Buch, a retired IAS officer of the state cadre, also resigned.

Jhunjhunwala had put allegations against Ravichandran of financial irregularities in the institutes funds. According to a report published by TOI, in this matter, Jhunjunwala alleged that the director had appointed an NRI company, Scduline, which is into education business to collect fee from the students of IIM's Dubai branch. 'This is unethical, how can you allow a private firm to collect fee on behalf of IIM-Indore?' asked Jhunjunwala. However, going totally against the allegations, the existence of the said company itself is quiet questionable.


Jhunjhunwala also questioned Ravichandran's role as chairman of a Chennai-based private society, which conducts seminar and management-related activities while being the director of IIM-I.


'There were complaints against him. I have found RC (Ravichandran) to be dishonest, he alleged. Jhunjhunwala said that there is a professor of IIM Indore, who is also associated with the society as its secretary.


CoolAvenues spoke to an insider at IIM I who said, Prof Ravichandran is one the most experienced directors that IIM Indore have had since its inception 12 years back. He come with an experience of 30 years in teaching and have taught at the most premier institute of management, IIM A. The allegations being put against the director are baseless.


CoolAvenues also tried to reach Prof Ravichandran but he was unavailable. Prof Ravichandran has all the proofs with him that shall prove him innocent of the entire allegation being put against him, exerted the source.


We were also told that Jhunjunwala was misguided by some of the members of the IIM-I board, that he could not differentiate between the role of chairman and the director.