IIM Rohtak director's ₹3.2 crore variable payout raises eyebrows
Dheeraj Sharma, the director of the Indian Institute of Management (IIM)Rohtak, has come under scrutiny for allegedly receiving around 200% of his total emoluments. The Internal Audit Wing (IAW) report revealed that Sharma received a variable pay of ₹3.2 crore over three years (2018-19, 2019-20 and 2020-21), significantly more than his salary, the Indian Express reported. This is unusual as variable pay typically constitutes a percentage of an individual's total earnings.
Audit report questions variable pay procedure
In its letter to the Indian Institute of Management (IIM) Rohtak, the Ministry of Education (MoE) also questioned the legitimacy of the payment procedure, labeling it as "void." The investigation by the MoE's IAW followed a series of complaints President Droupadi Murmu received, which she forwarded to the government in 2023. The complaint not only focused on the variable pay issue, but also on financial irregularities and the irregular issuing of mobile phones to institution faculty members.
Audit report flags premature approval of variable pay
The audit report also highlighted that Sharma's variable pay component was approved before the institute's rules were notified under the IIM Act. It noted that while the board considered the institute's financial health in approving variable pay, "financial health of the institute was irrationally inflated by adding unspent grants-in-aid and interest earned thereon into corpus fund of institute."
IIM Rohtak defends variable pay decision
The MoE has written to IIM Rohtak twice, seeking explanation on the audit's findings, specifically how the variable pay was calculated. It has also instructed the institute to identify people who approved the payment and explain procedures to retrieve the surplus funds. In response to the allegations, IIM Rohtak stated that Sharma's variable pay was approved unanimously by all board members as per the IIM Act. It also denied any inquiry conducted by the MoE related to Sharma's variable pay.
Sharma's educational qualifications under scrutiny
In addition to the variable pay, Sharma is also facing scrutiny for allegedly misrepresenting his educational qualifications to secure his term as IIM Rohtak's director in 2017. Despite objections from the ministry's representative, the institute's board approved his candidature for a second term in February 2022. In a March 2022 Punjab and Haryana High Court hearing, the government acknowledged this issue, but only after Sharma had served out his first term.
