Mumbai: Terming the Government's decision to slash Indian Institutes of Management (IIM) fees by 80 per cent as "retrograde", board member at IIM-Ahmedabad M S Banga said any decision on fees must be taken by the Board of governors of these institutes, not the Government.

Hindustan Lever chief Banga, along with Infosys chief and chairman of IIM-A Board N R Narayana Murthy have sought Prime Minister Atal Bihari Vajpayee's intervention in the matter, having failed to persuade Human Resources Development Minister Murli Manohar Joshi to reverse his fee cut fiat.

HLL chief's comments follow close on the heels of IIM Ahmedabad sources saying that the institute has received no grant from the Government this fiscal and only 30 per cent of its total expenditure was Government-funded in 2002-03.

IIM sources confirmed that the institute has received no money so far from the Government in 2003-04 and has been managing its finances from its internal resources.

"The decision to cut IIM fees is totally unnecessary and in fact a retrograde step. Anyway, the decision on fees can be taken only by the Board of governors of each IIM as per their charter; Government should not decide on IIM fee," Banga said in Mumbai.

"No body I am aware of has been unable to study at the IIMs for lack of finances...even if 25 to 30 per cent students do need financial aid, we should offer solutions to only these students and not slash fees across the Board," he added.