The Comptroller and Auditor General of India (CAG) has flagged systemic non-compliance with financial and governance norms at the Indian Institute of Management-Rohtak (IIM Rohtak), pointing to irregular expenditure, lapses in financial management and unauthorised changes to regulations governing the premier business school.According to the audit report, IIM Rohtak paid gross salaries amounting to Rs 88.64 lakh to 10 individuals without maintaining proper records of their appointments. The audit also found that the institute generated a surplus of Rs 217.91 crore but did not prepare annual budgets to estimate receipts and expenditure, even as it increased student fees during 2018-2024.The CAG further flagged additional financial irregularities amounting to Rs 52.34 lakh, including non-recovery of dues from faculty members who resigned during their probation period and irregular release of research incentives. The audit also detected instances of irregular travel bookings and claims made under Leave Travel Concession (LTC).The audit found that IIM Rohtak made 28 unauthorised changes to regulations that had already been vetted by the Ministry of Education, bypassing the prescribed oversight mechanism and altering provisions relating to the institute’s governance and the powers of its Director.Among the key changes flagged by the CAG was the removal of two conditions specifically inserted by the Ministry. These included a requirement that degree-granting programmes comply with University Grants Commission (UGC) guidelines and that the Director’s financial powers be exercised in accordance with the General Financial Rules (GFR).The Board of Governors (BoG) also reintroduced a provision that had earlier been rejected by the Ministry, allowing the Director or faculty members to retain royalties, sitting fees and research incentives.According to the audit, the provision was specifically applicable to the Director and faculty and did not align with the broader section dealing with the creation of posts and appointment of employees.The BoG further inserted two new provisions that were neither part of the draft submitted to the Ministry nor included in the vetted version. One of these granted the Director the status of permanent faculty. The CAG noted that the change could have wider implications by effectively extending to the Director the benefits available to permanent faculty.The audit also identified seven amendments that expanded the Director’s powers, including in the creation of posts, appointment and termination of staff, incentives, administrative controls and capital expenditure.“The Ministry of Education had approved the draft regulations on August 19, 2021, after they were vetted by the Ministry of Law and Justice, and directed IIM Rohtak to notify them through the Controller of Publications. However, audit scrutiny revealed that the Board of Governors (BoG), at its meeting on September 25, 2021, made 28 changes to the Ministry-vetted regulations before sending them for publication. The CAG noted that no records were furnished to establish that the modifications had been submitted to or approved by the Ministry before notification,” the report stated.