Probe agency ED searches 8 places in Delhi-NCR in case against FIITJEE

Residence of Dinesh Kumar Goel, managing director of company, among places investigated: Sources

The Directorate of Enforcement (ED) has searched eight places in Delhi NCR as part of a money-laundering probe against exams preparation company FIITJEE, said sources in the federal agency on Thursday

 

The searches follow a first information report (FIR) filed by the Economic Offences Wing of the Delhi Police, which acted on complaints filed by parents of young people who have subscribed to FIITJEE’s classes.

 

“ED is carrying out searches at eight locations in Delhi, Noida and Gurugram, in a PMLA [Prevention of Money Laundering Act] case related to promoters/ owners of a coaching centre. Action is being taken post various FIRs registered in Uttar Pradesh, Delhi in the matter,” according to sources.

 

 

Several FIITJEE centres across India closed down abruptly in January. Parents alleged that they had made advance payments for the entire year and FIITJEE did not inform them about the closures, leaving 12,000 students in the lurch.

 

Sources said the ED’s searches included the residence of Dinesh Kumar Goel, managing director of FIITJEE, and some offices of the company. "Allegations include diversion of funds taken from [FIITJEE] coaching centres towards personal gains / other entities," said a source.

 

FIITJEE provides tuition for engineering entrance exams and has 73 centres nationwide.

 

A case has been registered against FIITJEE Ltd, Goel, and other company officials for charges that include criminal breach of trust (Section 406), cheating and dishonest conduct (Section 420), criminal conspiracy (Section 120-B), and common intention (Section 34) under the Indian Penal Code.

 

In February, the police in Noida said notices were issued to account holders and owners of a FIITJEE centre in the Uttar Pradesh city. However, no response was received.