The premier engineering entrance coaching institute, FIITJEE, has come under the scanner of the Enforcement Directorate (ED) over alleged financial irregularities amounting to over ₹250 crore. The federal agency's investigation has revealed "serious" issues, including the alleged siphoning of funds collected from thousands of students across India. However, FIITJEE founder D.K. Goel has firmly denied the charges, claiming misrepresentation and foul play by rivals.
ED's Allegations Against FIITJEE
The ED's probe, initiated following multiple police FIRs filed by aggrieved parents and students across Noida, Lucknow, Delhi, Bhopal, and other cities, paints a troubling picture of the institution's recent operations. According to the ED:
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FIITJEE collected ₹250.2 crore from 14,411 students during four academic sessions spanning 2025–26 to 2028–29 under the pretext of providing educational services, which were allegedly not delivered.
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The agency found that substantial fees were collected from ongoing batches, but the promised academic services were not rendered.
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Funds collected were purportedly siphoned off for personal and unauthorised use, even as faculty salaries remained unpaid.
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Abrupt shutdowns of 32 FIITJEE centres were reported across cities like Ghaziabad, Lucknow, Meerut, Noida, Bhopal, Gwalior, Indore, Faridabad, and Gurugram, along with closures of offices in Delhi and Mumbai, impacting around 15,000 students.
The ED also conducted widespread searches on April 24 across multiple FIITJEE premises in Delhi-NCR, covering locations in Noida, Delhi, and Gurugram, including the residence of Director D.K. Goel. During the raids, the agency:
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Seized ₹10 lakh in cash and gold worth ₹4.89 crore.
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Retrieved "incriminating" documents and digital devices indicating a "systematic" siphoning of funds.
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Filed the case under the Prevention of Money Laundering Act (PMLA).
Furthermore, the ED reported detailed fee collections from students for various academic years:
|
Academic Year |
Fee Collected (₹ Crore) |
Number of Students |
|---|---|---|
|
2025–26 |
181.89 |
9,823 |
|
2026–27 |
47.48 |
3,316 |
|
2027–28 |
17.07 |
1,008 |
|
2028–29 |
3.76 |
264 |
D.K. Goel's Rebuttal: "No Diversion of Even One Rupee"
In his first public statement since the raids, FIITJEE founder D.K. Goel vehemently denied all allegations. Recounting the ED's early morning raid at his residence in Vasant Vihar, Delhi, Goel said:
"I was horrified to see strangers standing next to my bed. They refused to show me any identification cards. I thought dacoits had entered my house."
Goel strongly contested the ED’s figure of ₹250 crore, asserting that the actual fee collections were significantly lower due to many parents opting for instalment payments instead of lump-sum fees.
He clarified:
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There was "no diversion of even one rupee" for personal use.
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The cash and jewellery seized during the ED raids were meant for health emergencies relating to his mother's and his own poor health.
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His associates provided explanations and documented sources for all the cash and jewellery recovered.
Despite queries, the ED did not respond to Goel’s clarifications.
Competition, Bank Account Freezing, and Centre Closures
According to Goel, FIITJEE's troubles were exacerbated by:
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Staff poaching by rival coaching institutes, leading to mass abandonment at several centres.
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Freezing of FIITJEE’s bank accounts by authorities on February 7, which halted operational activities and payments, including faculty salaries.
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Negative media coverage further worsened the financial situation.
He refuted the ED's claim that 32 centres were shut, saying the number was "much lower," though he did not specify an exact figure. He emphasised that:
“We did not close a single centre. They were forced shut due to the abandonment of employees.”
FIITJEE’s New Online Classes Initiative
Despite the challenges, FIITJEE is attempting to regain its footing by moving classes online.
In a communication to students dated April 3, FIITJEE announced the commencement of an “elevation phase” through online classes, intended to last 3.5 to 6.5 weeks, after which offline classes are expected to resume.
The communication also accused competitors of orchestrating a campaign against FIITJEE:
"Frustrated with their failures, our competitors have been poaching our top students (only to ruin their rank & success) and our faculty, but to no avail. Conspiracies against FIITJEE are nothing new."
At its peak, FIITJEE had about 70 centres and integrated schools across India and had expanded internationally to Qatar and Bahrain. As of January, the institute boasted approximately 80,000 students. However, recent turmoil has led to a reduction in student strength to around 55,000–60,000.
The ongoing tussle between the Enforcement Directorate and FIITJEE highlights the fragility that even top-tier educational institutions face under regulatory scrutiny and market competition. While the ED claims serious financial misconduct involving ₹250 crore, FIITJEE’s founder D.K. Goel maintains that the allegations are unfounded and part of a larger conspiracy to destabilise the institute. As investigations continue, the final outcome will be crucial in determining the future of one of India's once-leading coaching brands.
With inputs from agencies
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