Govt Flags Rs 3.2 Cr Payout To IIM Rohtak Director, Seeks Probe

The Ministry of Education (MoE) has raised concerns over a Rs 3.2 crore variable pay awarded to Indian Institute of Management (IIM) Rohtak director, Dheeraj Sharma, spanning the years 2018-19, 2019-20 and 2020-21. The ministry's internal audit wing (IAW) flagged the payment, citing irregularities, according to media reports.

The probe was initiated after a series of complaints were forwarded by President Droupadi Murmu, acting as the 'visitor' of all IIMs, who referred the concerns to the government in October 2023. The complaints pointed to not only the variable pay but also other financial irregularities and the questionable issuance of mobile phones to faculty members.

The IAW noted flaws in the calculation of Sharma’s variable pay, which exceeded 200 percent of his fixed salary, violating standard financial norms. The audit body highlighted that variable pay should typically constitute a much smaller portion of total earnings, labelling the payment as lacking "financial prudence."

IIM's Variable Pay Rules

Under the IIM Act, a director's variable pay is determined by the Board of Governors based on performance metrics. However, the IAW found that Sharma’s variable pay for 2018-19 and 2019-20 was approved before the institute's regulations under the Act were notified, deeming the process invalid.

In response, IIM Rohtak denied any wrongdoing, asserting that the Board of Governors approved the pay in accordance with the IIM Act and that the payment was shared with the ministry a year and half before and the process was reviewed by the Comptroller and Auditor General (CAG), which found no issues. Despite the institute's defence, the IAW remains critical, emphasising that Sharma's pay exceeded acceptable limits.

This scrutiny adds to Sharma’s ongoing controversies. He has been under investigation since 2022 for allegedly misrepresenting his academic qualifications when applying for the director position in 2017. Despite these concerns, he was reappointed for a second term in February 2022, despite opposition from the ministry's representative on the Board of Governors.