ED Files Chargesheet Against FIITJEE Founders Over Financial Misconduct
Management faces money laundering charges after 32 coaching centres abruptly shut down operations.
1Formal Charges Filed
The Enforcement Directorate has filed a formal prosecution complaint against FIITJEE Ltd. and its directors, Dinesh and Monila Goel. This action follows a PMLA investigation in Ghaziabad regarding the alleged misappropriation of over ₹85 crore. The agency claims the management diverted student fees while the company operated under a significant financial deficit.
2Systemic Fee Misappropriation
FIITJEE allegedly collected advance fees between ₹2.8 lakh and ₹3.5 lakh per student for multi-year coaching programs. Despite knowing they could not deliver these courses, the management continued enrolling new students for programs extending until March 2029. This practice resulted in the retention of ₹85.79 crore, now classified as proceeds of crime.
3Sudden Centre Closures
Between May 2024 and February 2025, the institute abruptly shuttered 32 coaching centres without providing prior notice to stakeholders. This operational collapse left 14,411 enrolled students stranded without access to the services they had already paid for. The closures occurred while the company struggled with unpaid faculty salaries and internal financial instability.
4Executive Salary Discrepancies
While the institute faced severe liquidity issues, the promoters prioritised their own compensation. Dinesh and Monila Goel, holding an 86.31 per cent stake, approved their own salaries without independent oversight. Starting in 2022-23, the couple drew ₹24.92 crore, with Dinesh receiving ₹56 lakh monthly and Monila receiving over ₹25 lakh per month.
5Operational Negligence Revealed
Investigations revealed that Monila Goel rarely attended the office, primarily signing cheques from her residence. Her substantial salary payments continued even as the coaching centres were actively shutting down across the country. This lack of management oversight coincided with faculty departures caused by the institute's failure to pay staff salaries on time.
6Legal Investigation Origins
The ED’s money laundering probe originated from four separate police FIRs filed in Noida and Bhopal. The Noida Police had previously filed a chargesheet based on statements from 300 victims, including students and centre operators. These testimonies provided critical evidence regarding the collection of fees for services that were never actually delivered.
7Asset Seizure and Attachment
In April 2025, authorities seized ₹10 lakh in cash and jewellery valued at ₹4.86 crore during searches. By October 9, the agency had provisionally attached assets worth ₹66.92 crore. The ED is currently seeking the total confiscation of properties amounting to ₹71.88 crore as part of the ongoing legal proceedings against the directors.
8Corporate Accountability Implications
The FIITJEE case highlights the risks of unchecked promoter control in private educational institutions. With 14,411 students affected and significant public funds misappropriated, the incident underscores the necessity for stricter financial oversight in the coaching sector. The lack of a public statement from the Delhi-based institute further complicates the ongoing crisis.