CAG audit flags IIM Rohtak director's Rs 3.2 crore variable pay, other irregularities

The Comptroller and Auditor General of India (CAG) has questioned the Rs 3.20 crore variable pay granted to Dheeraj Sharma,  director, Indian Institute of Management (IIM) Rohtak, stating that the institute applied relevant regulations retrospectively, reports the Press Trust of India.  This is against the specified transparency, and statutory requirements, the CAG has said. 

The CAG has raised objections over the payment given to Dheeraj in variable pay, including tax deducted at source, given to the director of IIM Rohtak for 2018 to 2019, 2019 to 2020 and 2020 to 2021.

The audit found that the payments were approved after the relevant period had ended, even though the institute’s regulations governing variable pay came into effect only on October 25, 2021.

CAG flags gaps in IIM Rohtak approvals

According to the audit report, the board approved the variable pay using parameters that were recommended by its nomination and remuneration committee. However, IIM Rohtak could not provide documented evidence for performance targets, evaluation records or supporting calculations.

“On several occasions, specifically the 39th, 41st, 42nd, 44th and 48th meetings, there was no recorded evidence that the director recused himself from discussions on his own compensation,” the PTI quotes the report as saying. 

The Ministry of Education agreed with the audit findings in its April 2026 response and said the variable pay paid between 2018-19 and 2024-25 should be recovered.

The CAG separately flagged Rs. 7.49 crore paid to faculty as incentives and honorarium between 2019 to 2024. Of this, Rs 4.11 crore was used for paying teacher incentives beyond minimum workload, executive education and consultancy projects.