Fiitjee Faces Crisis: Sudden Centre Closures, Financial Irregularities Spark Outrage
Fiitjee, renowned for IIT entrance coaching, is under fire following abrupt centre closures, protests, and allegations of financial irregularities. Auditors flagged significant issues, including unpaid salaries and unsecured loans. The management promises swift action, calling the crisis a result of a "criminal conspiracy".
By Shreya Rajvanshi Gangal
For over 30 years, Fiitjee has been a beacon of excellence for IIT aspirants. However, the coaching giant now faces its biggest challenge yet. Multiple centres in Delhi-NCR, Ranchi, Kanpur, and Meerut were abruptly shut down, leaving students and their families distressed. Protests erupted as allegations of financial mismanagement and unpaid salaries came to light.
Fiitjee's management, in a statement issued on Saturday, attributed the crisis to a "criminal conspiracy" by managing partners who allegedly abandoned centres overnight. The company claims the situation is temporary and has promised to resume operations soon.
Yet, deeper issues have surfaced. Auditors raised concerns about unsecured loans, including a ₹60 crore advance dating back to 2011–12 and another ₹26.41 crore loan, now valued at zero. Fiitjee’s financial woes include a ₹70 crore loss in 2023 and accumulated losses of ₹237.10 crore, leading to complete erosion of its net worth.
Auditor BSR & Co, which resigned in December 2024, flagged delays in salary payments, revenue recognition errors, and tax irregularities. Despite these red flags, Fiitjee denies a cash crisis until January 2024, blaming mismanagement by managing partners for its financial downturn.
Students and parents demand clarity and accountability as the once-revered institution grapples with its credibility and future. For thousands of IIT aspirants, the stakes couldn’t be higher.
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