A recent audit by the Comptroller and Auditor General (CAG) has uncovered significant financial and governance issues at the Indian Institute of Management (IIM) Rohtak. The report, tabled in Parliament, highlights problems with fee setting, board procedures, contracts, and faculty payments, spanning operations from 2009 to 2025.
Fee Structure and Budgeting Lapses
The audit found IIM Rohtak lacked an annual budget to plan revenue and expenses. This absence of financial planning contributed to a high fee structure. The report noted this issue was flagged in a previous audit from 2019-21. Despite this, corrective actions were not taken. The institute generated substantial surpluses annually, making the fee hikes difficult to justify. The CAG report suggests a need-based fee restructuring.
Director Pay and Governance Concerns
The CAG report described the issues as "systematic violations of financial and governance norms." It pointed to weak internal controls and poor documentation. A key finding involved variable pay given to institute directors. Rules for this pay were enacted in October 2021. However, the institute applied them retroactively for the years 2018-19 to 2020-21. The Ministry of Education concurred with this finding. It confirmed a lack of proper regulation and paperwork for these payments. The ministry has mandated the recovery of all such payments made between 2018-19 and 2024-25.
