President Murmu gives nod to probe against IIM Rohtak Director over alleged financial irregularities

President Droupadi Murmu, in her capacity as Visitor of the Indian Institutes of Management (IIMs), has ordered an inquiry into alleged financial mismanagement at IIM Rohtak under the tenure of its current Director, Dheeraj Sharma.

The probe will investigate claims of "misappropriation of public funds" and the use of "manipulated figures" to grant Sharma substantial variable pay.

According to an order issued by the Ministry of Education on March 5, the inquiry will also scrutinize IIM Rohtak’s failure to submit Sharma’s degree certificate to the Ministry — a key requirement for his initial appointment in 2017. Questions have been raised over whether Sharma misrepresented his educational qualifications to secure the role.

The Punjab and Haryana High Court is reviewing a petition challenging Sharma’s appointment. After hearing arguments regarding his eligibility, the court reserved its final order on March 7.

Inquiry led by IIM Mumbai Director

The investigation will be conducted by IIM Mumbai Director, Professor Manoj Tiwari, who has been appointed as the inquiry officer. He is expected to submit his report within three months.

This is the first such inquiry launched after the 2023 amendments to the IIM Act, which increased government oversight over these autonomous institutions.

Serious financial irregularities identified

The inquiry follows an earlier investigation by the Principal Chief Controller of Accounts, which flagged “serious irregularities and grave misappropriation of public funds” at IIM Rohtak. The Ministry’s order details multiple concerns, including:

• Inflating the financial health of the institute to justify awarding Sharma variable pay exceeding ₹1 crore annually from 2018-19 onward.
• Violating General Financial Rules (2017) in managing the institute’s finances.
• Procuring and gifting mobile phones and other items to unidentified individuals.

IIM Rohtak has defended the payments to Sharma, stating that they were made in accordance with the IIM Act and only after the institute’s regulations under the Act were formalized.

Degree credentials under scrutiny

The Ministry has also raised concerns over Sharma’s academic credentials, stating that despite repeated requests during his first tenure (2017-2022), IIM Rohtak failed to submit his degree certificate until the end of his term. Sharma was reappointed in 2022 for a second term, set to conclude in 2027.

The inquiry will review procedural lapses in verifying and storing degree certificates of the Director and faculty members. It will also assess the institute’s handling of official queries, including responses — or lack thereof — to the Ministry of Education.

Court battle over Sharma’s appointment

The controversy surrounding Sharma’s appointment dates back to 2022 when the Ministry informed the Punjab and Haryana High Court that he had allegedly “misrepresented” his qualifications. As per the Ministry, a first-class Bachelor’s degree was a mandatory requirement for the role, but Sharma possessed only a second-division undergraduate degree.

During the Mar 7 court hearing, Additional Solicitor General (ASG) Satya Pal Jain, representing the Centre, reiterated the allegations, accusing Sharma of misleading both the government and the judiciary. The ASG claimed Sharma had concealed his second-class degree, rendering him ineligible under the advertised criteria.

Sharma’s legal counsel countered that his appointment was made through "special nomination," exempting him from the standard eligibility requirements. However, the petitioner’s counsel argued that even nominated candidates must meet the necessary criteria, citing past instances where two nominees were disqualified for failing to do so.

With both a judicial decision pending and a formal inquiry underway, Sharma’s tenure at IIM Rohtak remains under intense scrutiny.