There is no objection to regulation, especially since education is characterised by asymmetry of information. But regulation is one thing, control is another. Mandatory disclosure norms, as all companies must adhere to, spliced with external ratings, would be perfectly acceptable. Instead, the government wants control, exercised through three different bodiesthe UGC, AICTE and AIU. Should it even matter whether your business education is certified by a degree (under UGC) or a diploma (under AICTE) Most public B-schools offer degree programmes and private ones administer diplomas, and it isnt surprising that by and large, it is the diploma holders who get better jobs. They are found to be better performers. If the IIMs lose their autonomy on what fees they may charge, where they can set up branches or who they may admit, they might see a fall in job market demand for their graduates. It is not for any government to broadbase Indian management talent. Such enforced social engineering can have unintended consequences. If business pressures in the market necessitate it (as the modern economy envelops more and more people), any such need would be transmitted to the IIMs through the demand patterns of recruiters, and the institutes would respond to it themselvesby increasing capacity by a few multiples, for a start.