ED Conducts Major Seizure in FIIT-JEE Fraud Case: Rs 4.89 Crore in Jewellery and Rs 10 Lakh in Cash Taken from Director D.K. Goel
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Synopsis
The ED has confiscated jewellery worth Rs 4.89 crore and Rs 10 lakh in cash from FIIT-JEE's director amid allegations of a major fraud scheme aimed at deceiving students and parents. Evidence suggests funds were misappropriated for personal use, impacting thousands of students and leading to multiple investigations.
Key Takeaways
- ED seized Rs 4.89 crore in jewellery and Rs 10 lakh in cash.
- Director D.K. Goel linked to a fraudulent scheme.
- 32 coaching centres abruptly closed, affecting 14,411 students.
- Investigation initiated based on multiple FIRs.
- Evidence of financial irregularities discovered during searches.
New Delhi, April 26 (NationPress) Jewellery valued at Rs 4.89 crore and Rs 10 lakh in cash have been confiscated by the ED from the premises of D.K. Goel, the director of the FIIT-JEE coaching centre chain, amid allegations of a systematic scheme to embezzle funds, thereby deceiving students and their families, as reported by an official on Saturday.
The Enforcement Directorate conducted search operations at the properties belonging to Goel, including the offices of the CEO, COO, and CFO, as well as the institution’s official premises in the past week. These operations indicated that the fees collected from students were allegedly misappropriated for personal and unauthorized uses, leaving faculty salaries unpaid.
Evidence gathered during the searches showed that approximately Rs 206 crore was collected from students enrolled in ongoing batches by FIIT-JEE under the guise of providing educational services, which were ultimately not delivered, as stated by the official.
In the course of the searches, numerous incriminating documents and digital devices were seized, pointing to significant financial irregularities. The ED confirmed the seizure of Rs 10 lakh in cash and jewellery worth Rs 4.89 crore.
After collecting fees from students, the funds were diverted for unauthorized personal expenditures, leading to the abrupt shutdown of 32 coaching centres in areas such as Ghaziabad, Lucknow, Meerut, Noida, Prayagraj, Delhi, Bhopal, Gwalior, Indore, Faridabad, Gurugram, and Mumbai, according to the ED.
This unexpected closure caused significant distress for 14,411 students and their families, as stated by the agency.
The ED's preliminary analysis of the evidence gathered during these operations suggested a systematic scheme to misappropriate funds, thereby defrauding students and their families under the pretense of providing educational services.
The Lucknow Zonal Office of the ED executed searches on Thursday under the Prevention of Money Laundering Act (PMLA), 2002, across seven locations in Noida, Delhi, and Gurgaon as part of the FIIT-JEE fraud investigation.
The ED initiated its investigation against FIIT-JEE and its senior management following multiple FIRs filed across Noida, Lucknow, Delhi, Bhopal, and various other locations.
The FIRs accused the senior management of FIIT-JEE of collecting substantial fees from students and parents under the pretense of offering quality educational services, while engaging in large-scale financial fraud, criminal breach of trust, and educational malpractice by failing to deliver the promised educational services.
The raids were conducted under the Prevention of Money Laundering Act (PMLA) and reportedly included properties owned by the promoters of FIIT-JEE.
FIIT-JEE operates a coaching chain with 73 centres throughout India. The situation escalated when centres in areas like Ghaziabad, Noida Sector 62, and Greater Noida abruptly closed just before critical exams.
This sudden closure left hundreds of students in a difficult position, leading to outrage among their families.
Following this uproar, multiple FIRs were filed, prompting the Economic Offences Wing (EOW) of the Delhi Police to launch an investigation in February.
Notices were dispatched to account holders and centre owners; however, no responses were received. Subsequently, the police uncovered around 300 bank accounts suspected to be connected to the scam.
These accounts were frozen, and Rs 60 lakh was seized as part of the ongoing investigation, according to reports.
In March, the EOW formally charged FIIT-JEE with alleged fraud, including accusations of cheating, criminal conspiracy, criminal breach of trust, and common intention under various sections of the Indian Penal Code (IPC).
One centre in Laxmi Nagar, east Delhi alone received 192 complaints from distressed parents.
In response to the allegations, FIIT-JEE asserted that the decision to close the centres was not made by the company itself.
In a public statement, the coaching chain explained that the managing partners and their teams abandoned the centres without informing the main office.
