FIITJEE Issues Statement Amid Centre Closures in North India
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Synopsis
FIITJEE has denied any intentional closure of its centres in North India, attributing recent shutdowns to the sudden exit of a key partner. The institute assures parents that operations will resume soon while taking legal action against unfair trade practices.
Key Takeaways
- FIITJEE claims it did not close centres voluntarily.
- Recent closures stem from the sudden exit of key management.
- Legal actions are being pursued against competitors.
- Parents have filed complaints demanding fee refunds.
- FIITJEE operates 72 centres across 41 cities.
New Delhi, Jan 25 (NationPress) Amid growing concerns regarding the financial stability of FIITJEE, multiple branches across the Delhi-NCR region and northern India have recently closed down. However, the coaching institute clarified on Saturday that it has not shuttered any centre by its own choice.
In an official statement, the education firm explained that the abrupt departure of the Centre Managing Partner and the entire team was the sole cause of this unforeseen circumstance.
“The ongoing challenges faced by the institution are temporary. Our officials are diligently working to restore operations at all locations in a timely manner,” stated FIITJEE.
The closure of centres has led to outrage among hundreds of parents, many of whom have lodged complaints seeking refunds, as reported by police officials.
In cities such as Noida, Ghaziabad, Meerut, and Bhopal, parents have filed numerous police reports, while the esteemed South Delhi branch at Kalu Sarai, near IIT-Delhi, had to cease certain classes due to an exodus of teachers who allegedly had not received their salaries for several months.
FIITJEE remarked that regarding the criminal cases filed against it, “our legal team is taking appropriate measures against the unfounded accusations made against us.”
“This entire narrative is a part of a criminal plot orchestrated by individuals with ulterior motives, and through a thorough investigation, the truth will soon be revealed. The truth cannot be hidden indefinitely,” asserted the coaching institute in its statement.
Additionally, it stated, “We will pursue strict legal action against the unfair trade practices employed by our competitors in both civil and criminal courts.”
FIITJEE currently operates 72 centres across 41 cities and employs over 300 individuals.
On Thursday, a police complaint was submitted in Noida Sector-58 following the closure of the local FIITJEE centre, which did not offer refunds. Numerous similar complaints have been filed throughout northern India.
According to FIITJEE, the Corporate Office in Delhi only adheres to the advice of the Managing Partners to foster business growth, and the relevant officials from FIITJEE Corporate Delhi have consistently provided them with comprehensive support as per their requests and guidance based on their growth forecasts for their respective centres.
“Managing Partners operate under a profit-sharing model in addition to receiving a regular salary. They have been receiving consistent Management Information System reports via email since 2014-15 regarding this matter. They coerced the corporate management into taking control of the entire collections, leading to substantial losses,” the statement elaborated.
“Due to mismanagement and exploitation by the Managing Partners, FIITJEE’s financial situation deteriorated in January 2024. The group CFO predicted that the company could face an operational cash deficit within six months. In February 2024, the company addressed the Core Group and all Managing Partners, urging them to optimize excess manpower, enhance work culture, and clearly define the strategy for recovery, to ensure that their centres could operate without incurring additional losses,” the company explained.
This was communicated through recorded Zoom Meetings and written correspondence, but “most of the Managing Partners took no action,” the company emphasized.
“In fact, some managing partners exploited this situation to gain an unfair edge. Instead of focusing on proper optimization, they halted admissions and disrupted regular operations, worsening the financial crisis,” it added.
