Bhubaneswar, April 26: Assets including jewellery worth Rs 4.89 crore and Rs 10 lakh cash were seized by the ED from the FIIT-JEE chain of institutions on Saturday.
Based on an alleged systematic scheme to siphon off funds, defrauding students and their parents, the ED initiated stern action against the accused.
The search operations, carried out by the Enforcement Directorate at the premises of Director D.K. Goel, CEO, COO, and CFO, as well as at official premises of the institute, during the week have shown that fees collected from students was allegedly diverted for personal and unauthorised use. However, faculty salaries are yet to be paid.
The search action revealed that substantial amounts, approximately Rs 206 crore, were collected from the students by FIIT-JEE under the pretext of providing educational services, which were ultimately not delivered, said the official.
During the searches, several incriminating documents and digital devices were seized, indicating serious financial irregularities, said an ED sleuth.
After collecting fees from students, the funds were diverted for personal and unauthorised use, resulting in 32 coaching centres at Ghaziabad, Lucknow, Meerut, Noida, Prayagraj, Delhi, Bhopal, Gwalior, Indore, Faridabad, Gurugram and Mumbai, among others, shutting down abruptly, said the ED.
The sudden closure of the coaching centres caused distress to as many as 14,411 students and their parents, said the ED’s report.
The ED, Lucknow Zonal Office, conducted searches on Thursday under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at seven locations in Noida, Delhi and Gurgaon on Thursday in the FIIT-JEE fraud case.
