FIITJEE, the renowned coaching institute for JEE aspirants, has broken its silence regarding the sudden closure of several of its centres across the country, attributing the decision to the “overnight desertion” by the managing partners and their entire teams. The institute made it clear that it was a victim of exploitation, which contributed to its current financial woes. Despite its promises to resume operations, many parents are left skeptical about the situation.
In a statement released on Saturday, FIITJEE clarified that it had not made the decision to shut the centres, and the closures were a direct result of the managing partners abandoning their responsibilities. The institute emphasized that these closures were not a choice, but rather a force majeure situation triggered by the managing partners’ sudden departure.
FIITJEE explained that the managing partners were on a profit-sharing arrangement, in addition to receiving regular salaries. However, the institute’s financial situation deteriorated in January 2024 due to what it described as mismanagement and exploitation by these partners. FIITJEE’s Group Chief Financial Officer (CFO) had reportedly forecasted an operational cash crunch in the coming months due to these challenges.
“FIITJEE’s financial situation worsened in January 2024 due to mismanagement and exploitation by managing partners. As a result, the company began questioning the core group and the managing partners about optimizing excess manpower, improving the work culture, and outlining strategies to reverse the financial downturn,” the statement read.
The closures affected multiple centres in Uttar Pradesh, including Noida, Meerut, Ghaziabad, Lucknow, and Varanasi, as well as Bhopal, Patna, and Delhi. This left at least 3,500 students stranded, many of whom were relying on the institute’s expertise to help them excel in competitive engineering and medical exams. The mass resignation of teachers, triggered by issues such as unpaid salaries and better offers from competing institutions, further worsened the situation.
FIITJEE also accused its competitors of exploiting the situation. According to the institute, some managing partners exploited the closure of the centres to gain unfair advantages by halting admissions, which further aggravated the financial situation. FIITJEE has vowed to take strict legal action against these competitors, alleging unfair trade practices and poaching its faculty.
However, the institute’s promises to resolve the issue and resume classes within a “reasonable time frame” have not eased the concerns of many parents. “FIITJEE could not pay its teachers who left the institute. I have already enrolled my daughter at Aakash Institute’s Noida Sector 62 branch…. I cannot trust them again,” said Rakesh Kumar, whose daughter was enrolled at the FIITJEE Noida centre.
Both Aakash Institute and Sri Chaitanya in Patna have confirmed that former FIITJEE teachers have joined their teams. In response to the situation, FIITJEE has called for an audit of its finances and offered to allow students or parents to appoint a chartered accountant to investigate the centres’ affairs. The institute insists that it is a victim in this crisis and is working to recover from the difficulties caused by its partners’ actions.
As FIITJEE works to navigate this crisis, many students and parents are left grappling with uncertainty, questioning the future of the institute and its ability to fulfill its commitments to the JEE aspirants.
Sources By Agencies