FIITJEE Founder Rejects ED’s ₹250 Crore Fraud Claims
Unexpected ED Raid at Founder’s Home
D.K. Goel, the founder of FIITJEE, was taken aback when Enforcement Directorate (ED) officials stormed into his bedroom at his Delhi residence in Vasant Vihar around 5:10 am on Thursday. Initially, he mistook them for dacoits as they refused to show any identification.
Founder Denies ED’s Fraud Allegations
Goel firmly dismissed the ED’s allegations of a ₹250 crore fraud at FIITJEE, the esteemed engineering entrance exam coaching institute. He insisted that not a single rupee was misused.
Disputed Fee Collection Figure
Goel argued that the ₹250 crore fee collection figure cited by the ED was inaccurate. He clarified that the actual fee collected was significantly lower, as many parents opted for installment payments instead of a lump sum.
ED Raids and Closures
On Saturday morning, the ED revealed that its Lucknow office conducted raids at seven FIITJEE-related locations, including Goel’s residence. The agency discovered evidence that around ₹250 crore was collected as fees from over 14,400 students, but the educational services were not provided. As a result, approximately 32 FIITJEE coaching centers nationwide were closed.
Seized Cash and Jewelry
During the search, the ED confiscated ₹10 lakh in cash and jewelry worth ₹4.89 crore from Goel. He explained that the money was saved for medical emergencies due to his mother’s and his own health issues. Goel’s associates reportedly presented the ED officials with the source of funds for all the cash and jewelry.
Competition Blamed for Coaching Institute’s Woes
Goel attributed FIITJEE’s public downfall to competition. He alleged that rival institutes poached his staff at various centers, forcing their closure. In some centers, employees left FIITJEE to establish their own institutes.
Financial Hardships and Unpaid Salaries
Goel accused the authorities of freezing FIITJEE’s and its related entities’ bank accounts, causing financial difficulties and unpaid salaries to employees. The accounts were frozen on 7 February. He also blamed negative press and employee abandonment for the closure of numerous FIITJEE centers across the country.
FIITJEE Resumes Online Classes
FIITJEE, once the leading coaching provider for the Joint Entrance Examination (JEE) for admissions to the prestigious Indian Institutes of Technology (IIT) and other prominent engineering colleges, announced the resumption of coaching through online classes for students.
Online and Offline Learning
In a communication sent to students on 3 April, the institute stated that this online “elevation phase” of classes would continue for 3.5-6.5 weeks, after which offline classes would start.
Competition Blamed for Problems
In the same communication, the institute blamed competition for its troubles. “Frustrated with their failures, our competitors have been poaching our top students and also our faculty but of no avail. Conspiracies against FIITJEE are nothing new,” read the over 2,200-word statement.
At its height, FIITJEE operated around 70 coaching centers and integrated schools across India, expanding to Qatar and Bahrain. As of January, it had about 80,000 students, a number that has now dropped to 55,000-60,000, according to Goel.
