After the Union Government decided to initiate an inquiry against IIM-Rohtak Director Dheeraj Sharma, the institute’s Board of Governors (BoG) held a meeting last month where they “unanimously decided” to place him on leave. They also “instructed” him to vacate the campus until the investigation concludes, according to The Indian Express. On February 24, The Indian Express reported that the Centre had approached President Droupadi Murmu for approval to probe into alleged “misappropriation of public funds” at IIM-Rohtak during Sharma’s leadership. The allegations include using “manipulated figures” to award him “huge amounts” in variable salary.

An inquiry was launched on March 5, and IIM-Mumbai Director Professor Manoj Tiwari has been given three months to submit his findings. The investigation focuses on Sharma, who was accused of misrepresenting his academic credentials to be appointed IIM-Rohtak Director in 2017. As part of the probe, officials will also examine why the institute hasn’t sent Sharma’s degree certificate to the Ministry of Education, even after several follow-up requests.

Per the minutes from the Board of Governors meeting on March 20, the Board addressed the Visitorial inquiry against Sharma following two letters received from the Ministry of Education on March 13 and March 19. The Board decided to place Sharma on leave “till the completion of the inquiry” and instructed him to stay away from all IIM-Rohtak campuses and move to rented premises until further notice. The minutes also mention that Sharma would be given “reasonable time” to vacate.

Additional Solicitor General Satya Pal Jain has submitted the minutes from the last Board of Governors (BoG) meeting to the Punjab and Haryana High Court, which is reviewing a petition challenging Sharma’s appointment as the director of IIM-Rohtak. Sources indicate that the BoG’s decision will only be put into effect once the Court approves, as the matter is still under judicial consideration. This inquiry into Sharma is the first of its kind since the IIM Act was amended in 2023, giving the education ministry more authority over the IIMs.

The ministry has stated that it launched an investigation following an earlier inquiry by its principal chief controller of accounts, which uncovered “serious irregularities and grave misappropriation of public funds at IIM-Rohtak”. As per the official order, the alleged issues include: “Wrongfully inflating the financial health of the institute and using such manipulated figures to pay huge amounts of variable pay (more than Rs 1 crore for each year) to the Director of IIM-Rohtak for the years from 2018-19 onwards; violating General Financial Rules 2017 in managing the finances of the institute; and procuring and gifting mobile phones and other inducements to unnamed persons.”

The institute clarified that Sharma’s variable pay was granted in line with the IIM Act and was issued only after IIM-Rohtak’s regulations under the Act and related rules were officially implemented.

The ministry’s order mentioned that it had “repeatedly sought” Sharma’s degree certificate during his first term as Director, but IIM-Rohtak did not provide it “till the fag end of his tenure”. Sharma served as Director of IIM-Rohtak from 2017 to 2022 and was reappointed in 2022 for a second term until 2027. The order further stated that the inquiry would examine the “omission/ commission of acts” related to the “irregularities” highlighted. It will also investigate how degree certificates of the Director and faculty members are stored and verified at IIM-Rohtak and assess the process followed in “sending/ withholding replies” to questions raised by the Ministry of Education.

Nearly three years after the Ministry informed the Punjab and Haryana High Court in 2022 that Sharma allegedly misrepresented his qualifications for the role, an official inquiry is underway. The Ministry claimed that a first-class Bachelor's degree was required to be appointed Director, but Sharma had only secured a second division in his undergraduate studies.

At that time, the Ministry issued a show cause notice to Sharma, questioning why action shouldn't be taken against him for allegedly hiding his academic record and damaging the institute's reputation. Sharma took the matter to court, arguing that the Centre had no authority to interfere, as the IIM's Board of Governors was responsible for the appointment. However, in 2023, the Centre amended the IIM Act of 2017, making the President of India the Visitor of all IIMs. This change gave the President the power to appoint key officials and audit institutions and initiate earlier inquiries and responsibilities with the Board of Governors.

Now, the government exercises its authority in IIM-related matters through the President, acting as the Visitor.