Audit finds unauthorised regulation changes, irregular payments
The Comptroller and Auditor General of India (CAG) has flagged multiple instances of financial and governance lapse at IIM Rohtak, reporting irregular expenditure, inadequate financial controls and unauthorised amendments to regulations that had been vetted by the Ministry of Education, according to the audit report reported by The Tribune.
The audit found that the institute paid gross salaries totalling ₹88.64 lakh to 10 persons without maintaining proper appointment records. In addition, the CAG identified other financial irregularities amounting to ₹52.34 lakh, which included non-recovery of dues from faculty who resigned during probation and irregular release of research incentives. The audit also pointed to questionable travel bookings and claims under Leave Travel Concession (LTC).
- Gross salaries without records: ₹88.64 lakh paid to 10 individuals.
- Other financial irregularities: ₹52.34 lakh, covering unrecovered dues and irregular incentives.
- Surplus without budgets: Institute generated a surplus of ₹217.91 crore but did not prepare annual budgets for receipts and expenditure.
- Regulatory changes: 28 unauthorised amendments to regulations previously vetted by the Ministry of Education.
- Fee changes: Student fees were increased during 2018–2024.
Surplus but no annual budgeting
The CAG noted that IIM Rohtak recorded a surplus of ₹217.91 crore yet did not prepare annual budgets estimating receipts and expenditures. The audit highlighted this as a significant lapse in financial management, particularly given that the institute increased student fees in the 2018–2024 period.
| Item | Amount / Finding |
|---|---|
| Gross salaries paid without appointment records | ₹88.64 lakh |
| Other financial irregularities | ₹52.34 lakh |
| Accumulated surplus | ₹217.91 crore |
| Unauthorised regulatory amendments | 28 changes |
Unauthorised changes to regulations and governance concerns
The audit report recorded that IIM Rohtak's Board of Governors (BoG) made 28 changes to regulations that had already been vetted by the Ministry of Education. The amendments, the CAG said, bypassed the prescribed oversight mechanism and altered provisions related to institute governance and the director's powers.
Among the changes highlighted were the removal of two conditions earlier inserted by the Ministry: one requiring degree-granting programmes to comply with University Grants Commission (UGC) guidelines, and another that the Director's financial powers be exercised in line with the General Financial Rules (GFR). The BoG also reintroduced a provision allowing the Director or faculty to retain royalties, sitting fees and research incentives — a clause the Ministry had earlier rejected, the audit said.
"The Board of Governors reintroduced a provision allowing the Director or faculty members to retain royalties, sitting fees and research incentives, which was previously rejected by the Ministry," the audit noted, as reported by The Tribune.
Implications for students and oversight
The CAG's findings raise questions about internal controls at the institute, particularly in areas that affect expenditure authorisation, employee appointments and transparency in financial planning. The failure to prepare annual budgets despite a substantial surplus may be of concern to students and parents given concurrent fee increases between 2018 and 2024.
The audit's observations on unauthorised regulatory amendments also touch on institutional autonomy and accountability: changes that alter the Director's financial powers and faculty entitlements to royalties or incentives could affect governance dynamics at the top level.
The Tribune reported the audit findings; the CAG report itself is the primary source for the specific financial figures and governance issues described.
Procedural follow-up and any response from IIM Rohtak or the Ministry of Education were not included in the report published by The Tribune. Further action, if any, will depend on institutional and ministry-level review of the CAG's recommendations and possible corrective measures.
