In 2023, FIITJEE, a premier coaching institute for engineering aspirants, made a bold claim: “If you can be an extraordinary teacher, we assure you wealth worth ?100 crore in seven years.” But just two years later, over 10 FIITJEE centres across India have shut down, leaving students stranded and parents with no refund in sight.
FIITJEE insists the closures were due to financial mismanagement by its managing partners and alleges a conspiracy by competitors. However, reports indicate that the institute has been running at a loss, with financial discrepancies amounting to ?237.10 crore by March 2023. Complaints from Indore, Prayagraj, Delhi, and several other cities suggest that students, who paid up to ?6 lakh in fees, are now left with no classes.
But FIITJEE is not the only one. The Indian coaching industry is rife with deception. In December 2024, the Consumer Protection Authority fined three UPSC coaching centres ?15 lakh for falsely claiming successful candidates as their own.
At the same time, India’s ed-tech sector, which boomed during the COVID-19 pandemic, is facing a massive downturn. Over 2,148 ed-tech startups, including Byju’s-backed ventures, have shut down in the last five years. Byju’s, once a decacorn valued at over $10 billion, is now struggling with layoffs and loan repayments.
Despite repeated scams and closures, parents continue to pour their savings into coaching centres. Without strict regulations and accountability, India’s coaching industry will remain a trap—one that feeds on students’ dreams and parents’ desperation.
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