The Ministry of Education (MoE) has raised serious concerns regarding a substantial variable pay of Rs 3.2 crore given to Dheeraj Sharma, Director of the Indian Institute of Management (IIM) Rohtak, over three consecutive years 2018-19, 2019-20, and 2020-21. This investigation comes in response to a directive from President Droupadi Murmu, who, in her capacity as the Visitor of all IIMs, flagged various complaints against the institution.
MoE Flags Financial Irregularities
The MoE’s Internal Audit Wing (IAW) has been tasked with investigating multiple complaints related to the administration of IIM Rohtak. The complaints, forwarded by President Murmu to the Ministry on October 6, 2023, highlighted several issues, including the director’s variable pay, irregular issuance of mobile phones to faculty members, and other financial irregularities within the institute.
President’s Concerns Lead to Scrutiny
The President’s office forwarded these concerns to the Ministry of Education in October 2023. Following this, the Ministry engaged the Internal Audit Wing (IAW) to scrutinize the complaints in detail. The IAW submitted its report in January 2024, outlining various irregularities, with the primary focus being the Rs 3.2 crore payout to Director Dheeraj Sharma.
Allegations of Misrepresentation of Qualifications
Dheeraj Sharma, appointed as the Director of IIM Rohtak in 2017, is not new to controversy. He is already under government scrutiny for allegedly misrepresenting his educational qualifications to secure his initial term. These allegations, if proven true, could have serious repercussions, not only for Sharma but also for the governance of IIM Rohtak.
Variable Pay Under Question
The key issue flagged by the MoE revolves around the variable pay awarded to Sharma over three years. The Ministry has questioned the legitimacy of such a large payout, given that it does not align with the standard compensation structure for IIM directors. The Internal Audit Wing’s objections are centered on the procedures followed by IIM Rohtak in awarding this payment and whether due diligence and transparency were maintained.
Impact on IIM Rohtak’s Reputation
The controversy surrounding the financial management and leadership of IIM Rohtak could have far-reaching implications for the institution. As one of the premier management institutes in India, IIM Rohtak is expected to uphold the highest standards of governance and integrity. Any breach of these standards can undermine its credibility and trust among stakeholders, including students, faculty, and alumni.
Future Course of Action
The Ministry of Education has not yet disclosed its course of action following the IAW’s findings. However, a thorough investigation into the financial practices and governance structure of IIM Rohtak is anticipated. If the allegations are substantiated, it could lead to significant changes in leadership and governance at the institution.
The probe into the Rs 3.2 crore variable pay to IIM Rohtak’s Director Dheeraj Sharma raises serious questions about financial transparency and governance within one of India’s top management institutes. As the investigation unfolds, it remains to be seen how IIM Rohtak will navigate this challenging phase and what measures the Ministry of Education will take to ensure accountability and integrity.
Saathee Global
