ED accuses FIITJEE of ₹200 crore scam, raids offices over money laundering allegations

The Enforcement Directorate (ED) on April 26 accused FIITJEE, a well-known coaching institute, of collecting over ₹200 crore in fees from thousands of students and parents without delivering the promised education, pointing to "serious" financial irregularities and alleged fund siphoning.

In a statement, the federal agency said it seized ₹10 lakh in cash and jewellery worth ₹4.89 crore during raids conducted on April 24.

The searches targeted seven locations across Noida, Delhi, and Gurugram, including the offices and homes of FIITJEE Director DK Goel and other senior officials.

The ED’s money laundering case, registered under the Prevention of Money Laundering Act (PMLA), is based on several FIRs lodged by parents and students in Noida, Lucknow, Delhi, Bhopal, and other cities.

The complaints accuse FIITJEE's top management of taking "substantial" sums with the promise of high-quality education, but instead committing "large-scale" financial fraud, criminal breach of trust, and educational malpractice.

According to investigators, FIITJEE collected approximately ₹250.2 crore from 14,411 students for the academic years 2025–26 to 2028–29.

"Substantial amounts were collected from students of currently running batches by FIIT-JEE under the pretext of providing educational services, which were ultimately not delivered," the ED said.

The agency further claimed that instead of investing the money in academic infrastructure and salaries, the funds were allegedly misused for personal gains, leaving faculty salaries unpaid.

This financial mismanagement reportedly led to the sudden closure of 32 coaching centres in cities like Ghaziabad, Lucknow, Meerut, Noida, Bhopal, Gwalior, Indore, Faridabad, Gurugram, Mumbai, and Delhi — affecting nearly 15,000 students.

During the raids, the ED said it seized "incriminating" documents and digital evidence that point to "serious" financial misconduct.

A preliminary review of the seized material, the agency added, suggests a "systematic" plot to "siphon off" funds.