FIITJEE Denies Shutting Down Centres Over Financial Crisis Amid Parents' Protests, FIRs

FIITJEE, amid financial troubles, denies voluntarily closing centers, blaming abrupt exits by partners and staff. The institute faces protests, police complaints, and allegations of non-payment of salaries.

FIITJEE alleges a "criminal conspiracy" and stated that it plans legal action against competitors for "unfair trade practices."

Source : x.com/fiitjee

FIITJEE, a prominent coaching institute, has denied voluntarily closing any of its centres amid reports of financial troubles and shutdowns across Delhi-NCR and north India. In a statement on Saturday, the institute attributed the situation to the abrupt exit of a Centre Managing Partner and staff, calling it a "force majeure type of condition."  

“The present turmoil in the institution is temporary. Company officials are working to resume operations at all places within a reasonable time,” FIITJEE stated.  

The closure of centres in cities such as Noida, Ghaziabad, Meerut, and Bhopal has led to widespread protests from parents, many of whom have filed police complaints demanding a refund of fees, police officials said, as per news agency IANS. In South Delhi’s Kalu Sarai, near IIT-Delhi, classes were reportedly disrupted due to the alleged non-payment of teachers' salaries for several months, resulting in an exodus of faculty.  

According to news agency PTI, The founder of FIITJEE, along with 11 other individuals, was booked following a complaint filed by parents of students enrolled in the coaching institute’s Delhi-NCR branches. The Noida Police announced on Saturday that FIITJEE founder DK Goyal, Chief Financial Officer Rajiv Babbar, Chief Operating Officer Manish Anand, and the Greater Noida branch head Ramesh Batlesh had been named in the First Information Report (FIR).

In response to over 250 accusations of fraudulent practices and mismanagement following the abrupt shutdown of FIITJEE’s East Delhi center, the Delhi Police initiated an investigation, PTI cited sources as informing.

FIITJEE Alleges 'Criminal Conspiracy' Amid Police Cases

FIITJEE maintained that it is taking legal action against criminal cases filed against the institute, alleging that the controversy is part of a “criminal conspiracy” by vested interests. “This entire story is part of a criminal conspiracy which has been hatched by people with vested interests and very soon, through a detailed investigation, the truth will emerge. Truth cannot be concealed forever,” the statement read.  

The coaching institute also warned of legal action against competitors, accusing them of engaging in “unfair trade practices” and stating that it would pursue the matter in both civil and criminal courts.  

FIITJEE, which operates 72 centres across 41 cities and employs over 300 people, blamed its financial difficulties on mismanagement by its Managing Partners. According to the statement, the Corporate Office in Delhi merely followed the advice of these partners to grow the business, but they allegedly misused their authority, leading to significant losses.  

“Managing Partners have a profit-sharing model besides getting a regular salary. They have been receiving regular MIS by email since 2014-15 to this effect. They compelled the corporate management to usurp the entire collections, causing significant losses,” FIITJEE claimed.  

The company noted that its financial distress became apparent in January 2024, prompting its Chief Financial Officer to warn that an operational cash crunch could arise within six months. By February 2024, the Core Group and Managing Partners were asked to optimise staff, improve work culture, and strategise a financial recovery, FIITJEE stated.  

“These discussions took place through recorded Zoom meetings and written communications, but most Managing Partners did not take any action,” the company asserted. Instead, it accused some partners of exploiting the crisis for personal gain, saying, “Rather than working on proper optimisation, they halted admissions and disrupted regular processes. This exacerbated the financial crunch.”  

A police complaint was filed in Noida’s Sector-58 on Thursday over the sudden closure of the FIITJEE centre there without refunds. Similar complaints have surfaced in multiple locations across north India, as per IANS.