Centre Directs IIM Rohtak Board to Suspend Director Pending Corruption Investigation
The Union Ministry of Education has issued a directive to the Board of Governors of the Indian Institute of Management (IIM) Rohtak, asking them to either suspend Director Dheeraj Sharma or place him on leave until the completion of a probe into allegations of financial misappropriation. The allegations against Sharma, which include financial irregularities and procedural violations, have prompted the Ministry to intervene, urging immediate action to prevent any possible influence over the investigation.
Background of the Allegations
The allegations against Sharma primarily revolve around financial mismanagement at IIM Rohtak during his tenure. According to sources, Sharma is accused of inflating the institute’s financial performance, manipulating accounts to secure substantial variable pay exceeding ₹1 crore annually since 2018-19. Additionally, violations of the General Financial Rules (GFR) in procurement processes have raised serious concerns.
Reports suggest that mobile phones and other inducements were distributed without proper authorization, further complicating the financial transparency of the institution. The Ministry of Education took cognizance of these irregularities after a report by the Principal Chief Controller of Accounts flagged potential misappropriation of public funds at IIM Rohtak.
Government’s Intervention and Directive
In response to these findings, the Ministry of Education directed IIM Rohtak’s Board to take immediate corrective measures. Sharma has been instructed to stay away from the IIM Rohtak campus and any rented premises of the institution until the investigation concludes. The Board has been given the responsibility of ensuring compliance with this directive to uphold the integrity of the probe.
Furthermore, the Ministry has advised the Board to appoint an interim director from among faculty members who have not previously been involved in the financial administration of the institute. This move aims to prevent any potential conflict of interest and ensure a fair investigation process.
Presidential Inquiry and Scope of Investigation
The seriousness of the case has prompted President Droupadi Murmu to order an official inquiry into the allegations. The inquiry will not only focus on the financial discrepancies but will also scrutinize Sharma’s educational qualifications, as well as the qualifications of other staff members recruited at IIM Rohtak.
The probe will evaluate whether the recruitment processes followed due diligence and whether any unqualified individuals were given positions under Sharma’s leadership. The findings of this investigation will play a crucial role in determining whether Sharma will face legal action or additional penalties beyond administrative suspension.
Cancellation of Board Nomination and Internal Reforms
Alongside suspending Sharma, the Ministry of Education has instructed IIM Rohtak’s Board to cancel the proposed renomination of Neeraj Kansal as a Board member. This decision was made on the grounds that Kansal’s renomination violated Section 4(I)(a) of the IIM Rules, 2018. The cancellation of his appointment is viewed as part of broader internal reforms aimed at restoring transparency and accountability within the institution.
The Board has also been advised to conduct a thorough review of financial and administrative procedures to prevent similar irregularities from occurring in the future. Strengthening internal checks and balances has become a priority to ensure the credibility of IIM Rohtak remains intact.
Past Controversies Surrounding Dheeraj Sharma
This is not the first time Sharma has been embroiled in controversy. Previous legal challenges have questioned his qualifications, while allegations of sexual harassment have also surfaced against him in the past. Although these cases have not yet resulted in any legal convictions, they add to the growing scrutiny over Sharma’s tenure as Director of IIM Rohtak.
The new allegations of financial misappropriation further tarnish his reputation and put the institution’s governance under the spotlight. Given that IIMs are premier management institutions in India, such controversies risk damaging their esteemed reputation on both national and international platforms.
Impact on IIM Rohtak’s Reputation
IIM Rohtak, like other IIMs, is expected to uphold high ethical and academic standards. The ongoing controversy threatens to impact its standing among students, faculty, and recruiters. Prospective students and corporate partners may question the credibility of the institute’s leadership and management practices.
Moreover, the scandal raises concerns about governance in autonomous educational institutions. While IIMs are granted substantial independence in their operations, cases like this highlight the need for stronger oversight mechanisms to prevent financial and administrative mismanagement.
Possible Legal and Administrative Outcomes
The probe into Sharma’s alleged misconduct is expected to be completed within three months. Depending on the findings, Sharma could face:
- Suspension or Termination: If found guilty of financial mismanagement, Sharma could be permanently removed from his post.
- Legal Action: If evidence of fraud or misappropriation of funds is established, Sharma could face criminal charges.
- Financial Penalties: The government could impose fines or demand the return of any unlawfully obtained financial benefits.
- Institutional Reforms: The Board may introduce stricter financial and administrative policies to prevent similar occurrences in the future.
Way Forward for IIM Rohtak
To rebuild trust, IIM Rohtak must take proactive steps to address the concerns raised by this controversy. Some possible measures include:
- Transparency in Financial Management: Implementing stricter auditing mechanisms to ensure accountability in the use of public funds.
- Independent Oversight: Establishing an independent review panel to oversee financial and administrative decisions.
- Strict Recruitment Policies: Ensuring that all faculty and administrative staff meet the required qualifications through rigorous verification.
- Student and Faculty Confidence Building: Holding open forums where concerns can be addressed transparently.
The Centre’s directive to suspend or send Sharma on leave underscores the gravity of the allegations against him. As the investigation unfolds, it will be crucial to ensure that due process is followed while maintaining the reputation and operational integrity of IIM Rohtak.
For an institution that prides itself on producing future business leaders, it is imperative that it sets an example of ethical governance. The coming months will be crucial in determining whether this scandal becomes a turning point for positive reform or leaves a lasting stain on IIM Rohtak’s reputation.
