NEW DELHI: The Enforcement Directorate has added a new dimension to its actions — its recent searches on FIITJEE were prompted not just by financial irregularities, but also by the institute’s failure to deliver “quality educational services” promised to students.
The anti-money laundering agency has always been confined to probing financial frauds, tracking money trail of proceeds of crime and attachment of assets. But, of late, it has shifted its focus to immediate restitution of attached assets: be it to banks or individuals who have been scammed by fraudsters.
As an outcome of its searches earlier this week, ED on Saturday said the probe revealed FIITJEE collected Rs 250 crore from 15,000 students and siphoned off the proceeds in buying personal properties by di rectors and other top executives of the coaching company.
At least 32 coaching centres at Ghaziabad, Lucknow, Meerut, Noida, Prayagraj, Delhi, Bhopal, Gwalior, Indore Faridabad, Gurugram, Mumbai etc were abruptly shut down, causing widespread distress leading to several FIRs registered by police in several states.
“These funds were diverted for personal and unauthorized use, while faculty salaries remained unpaid,” ED said. On April 24, ED conducted searches at seven locations in Noida, Delhi and Gurgaon in the case of FIITJEE fraud.
The ED said it initiated investigation against FIIT-JEE and its senior management as FIRs alleged that the “senior management collected substantial fees from students and parents under the pretext of providing quality educational services, but instead engaged in large-scale financial fraud and criminal breach of trust.”
