The Enforcement Directorate (ED) has launched a sweeping money laundering probe against FIITJEE, one of India’s top coaching institutes, after hundreds of parents alleged they were cheated out of lakhs in tuition fees. Raids were conducted across eight locations in Delhi-NCR amid accusations of abrupt closures, false advertising, and fund diversion by senior management.
An Education Giant Under Fire: Raids Rock FIITJEE Over Fee Fraud Allegations
In a serious setback for India’s competitive exam coaching industry, the Enforcement Directorate (ED) on Wednesday raided eight locations across Delhi, Noida, and Gurugram linked to FIITJEE Ltd, the prominent engineering coaching institute. The raids, carried out under the Prevention of Money Laundering Act (PMLA), follow a case registered by the Delhi Police’s Economic Offences Wing (EOW) that accused the institute of financial fraud, cheating, and criminal conspiracy.
The investigation was triggered by 192 complaints from parents and students, especially from the now-defunct East Delhi centre in Laxmi Nagar, who claim they were left stranded after FIITJEE centres suddenly shut down in January 2024. The complainants allege they paid lakhs of rupees in advance for full-year coaching programs but received no service, no prior intimation of closure, and no refunds.
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According to ED officials, the searches also covered residences of key management figures, including DK Goel, the managing director of FIITJEE, as well as several corporate offices believed to be involved in the alleged financial irregularities.
False Promises and Deceptive Tactics: Inside the Alleged Scam
At the heart of the controversy are accusations of misleading advertisements, exaggerated success rates, and aggressive marketing to lure in thousands of students across India. FIITJEE, which boasts 73 coaching centres nationwide, promised top-level preparation for JEE and other engineering entrance exams—at a premium cost.
“The institute engaged in deceptive marketing and breached the trust of students and their families,” said DCP Vikram K Porwal of the EOW. Many parents reportedly borrowed money or dipped into savings believing the institute’s claims, only to be blindsided when operations ceased without notice.
The EOW FIR filed in March 2024 lists Sections 406 (criminal breach of trust), 420 (cheating), 120-B (criminal conspiracy), and 34 (common intention) under the Indian Penal Code (IPC). It also names FIITJEE’s MD Dinesh Kumar Goel and other senior officials as accused parties.
Sources within ED claim they are investigating possible fund diversion, including the transfer of tuition money from coaching centres into unrelated personal or business accounts.
A Crumbling Reputation: What This Means for the Coaching Industry
FIITJEE, once a trusted name among aspiring engineers, is now facing a reputational crisis. As authorities pore through financial records and parent testimonies, concerns are growing about the lack of regulatory oversight in India’s multi-crore coaching industry.
In recent years, coaching centres have mushroomed across India, riding on the back of soaring demand for competitive exam preparation. Yet, cases like FIITJEE’s underscore the urgent need for stricter regulation, transparency in advertising, and protection for students and their families.