Third IIM Head Resigns Over Board Clash: What Happened at IIM Raipur
IIM Raipur Director Ram Kumar Kakani resigns citing administrative rift with board. Learn why autonomy and governance issues led to his exit and what this means for IIMs.
IIM Raipur (PC- Social Media)
Ram Kumar Kakani, Director of IIM Raipur, resigned on July 21, 2025, two years before completing his tenure. His resignation marks the third time in five years that an IIM head stepped down due to differences with the board of governors. Kakani highlighted that his professional space was restricted, affecting his ability to manage the institute effectively.
Disciplinary Action Sparks Controversy
The resignation followed disciplinary action taken against a faculty member in 2024. The associate professor had been suspended over alleged academic impropriety, but the High Court struck down the suspension, stating that the board, not the director, holds the appointing authority as per the IIM Act, 2017. This legal outcome created tension over the governance structure and administrative autonomy at IIM Raipur.
Autonomy Under Strain
Kakani had written to the Ministry of Education over a month before his resignation, seeking guidance on administrative and operational concerns. He pointed out that the board of governors, led by Chairman Puneet Dalmia, was taking control of executive functions that statutorily belonged to the director. He stressed that this undermined the spirit of the IIM Act, which aims to balance autonomy and accountability.
Court Interventions and HR Policy Clash
The faculty member’s suspension was challenged in court, which quashed the proceedings twice. The legal verdict highlighted a conflict between the IIM Act and the institute’s pre-2017 HR policies. Kakani noted that these policies were being followed despite amendments in the Act, leading to a “constriction of professional space” for the director to enforce governance and discipline.
A Pattern of Resignations
Kakani is the third IIM director to resign over board conflicts in recent years. Anju Seth (IIM Calcutta, 2021) and Uttam Kumar Sarkar (IIM Calcutta, 2023) stepped down under similar circumstances. These resignations raise concerns about governance models at premier management institutions and the balance of power between directors and boards.
Kakani’s Academic Journey
Before IIM Raipur, Kakani taught at IIM Kozhikode, XLRI Jamshedpur, and LBSNAA Mussoorie. After leaving IIM Raipur, he assumed the role of Vice Chancellor at RV University in Bengaluru. His resignation reflects the challenges that academic leaders face in maintaining autonomy while navigating board oversight.
Implications for IIM Governance
The resignation highlights broader questions about how IIMs are governed. The IIM Act, 2017, was designed to provide autonomy to directors while ensuring accountability. However, recent events at Raipur suggest that interpretation of governance provisions can lead to conflicts. Experts argue that clear delineation of powers is essential to avoid operational deadlocks in top management schools.
Looking Ahead
The Ministry of Education has yet to comment on the resignation publicly. Meanwhile, IIM Raipur must manage leadership transitions while maintaining academic and operational stability. This episode underscores the importance of transparent policies, strong governance frameworks, and mutual understanding between boards and directors.