₹206 cr collected from students diverted for personal use: ED after FIITJEE raids

The Enforcement Directorate (ED) has uncovered an alleged fraud of over ₹206 crore at FIITJEE, wherein the money was collected from students but the educational services were not delivered, before the coaching institute abruptly shut down 32 centres in January, leaving students stranded and faculty unpaid.

According to the ED statement released on Saturday, the collected funds were “diverted for personal and unauthorised use” by FIITJEE’s management while “faculty salaries remained unpaid,” triggering multiple complaints across several cities.

ED officials seized cash worth ₹10 lakh and jewellery valued at ₹4.89 crore during searches conducted at seven locations across Noida, Delhi and Gurgaon on Thursday, targeting both residential and official premises of the institute’s top management.

According to the ED statement, the institute amassed ₹250.2 crore from 14,411 students across four academic years spanning 2025-26 to 2028-29, before abruptly shutting down.

HT reached out to FIITJEE management but no response was immediately available.

In January, when centres first began closing, FIITJEE claimed the closures were not “its own decision” but happened due to the “unexpected and sudden departure” of centre managing partners and heads along with their teams.

The coaching institute had also claimed in January that its financial difficulties began in 2024 due to “mismanagement” by managing partners. Despite warnings from the chief financial officer about an impending cash crunch and directives to optimise manpower, FIITJEE alleged that most managing partners failed to act, with some exploiting the situation by halting admissions, thereby worsening the crisis.

Saturday’s searches were carried out at residences of FIITJEE director DK Goel, who is also the chief executive officer, chief operating officer, and the chief financial officer, as well as at the official premises of the coaching institute in Delhi.

The investigation has revealed a detailed breakdown of the allegedly misappropriated funds. “Around ₹181.89 crore was collected from 9,823 students in the academic year 2025-2026. Similarly, ₹47.48 crore was collected from 3,316 students for the academic year 2026-2027, ₹17.07 crore from 1,008 students for 2027-2028 and ₹3.76 crore was collected from 264 students for the academic year 2028-2029,” the ED statement said.

Among the alleged frauds unearthed by ED, around ₹206 crore was against services not delivered while the ₹250.2 crore was collected from 14,411 students across four academic years.

The agency registered a case under the Prevention of Money Laundering Act (PMLA) following multiple FIRs filed in Lucknow, Noida, Delhi, Bhopal, and other locations against FIITJEE and its senior management.

These FIRs alleged that the institute’s management engaged in “large-scale financial fraud, criminal breach of trust, and educational malpractice by failing to deliver the promised services”.

The sudden closure of coaching centres across major cities including Ghaziabad, Lucknow, Meerut, Noida, Prayagraj, Delhi, Bhopal, Gwalior, Indore, Faridabad, Gurugram, and Mumbai has left thousands of students in the lurch midway through their preparation for competitive exams.

The agency seized “incriminating” documents and digital devices during the searches that indicate “serious” financial irregularities. A preliminary analysis of these materials suggests a “systematic” scheme to “siphon off” funds collected from students and parents, the ED said.