The Crossbill News Desk
The Enforcement Directorate (ED) has withdrawn a press release alleging financial irregularities at coaching institute FIITJEE after informing the Delhi High Court that a “Preliminary Analysis Report” referred to in the statement did not actually exist.
The press release, issued by the ED's Lucknow unit on April 26, 2025, followed searches at the residences of FIITJEE executives and offices in Noida and Ghaziabad. The agency had alleged large-scale diversion of student fee money and claimed to have identified Rs 206 crore as “proceeds of crime” linked to the institute, Bar and Bench reported.
It further stated that a preliminary analysis of seized material from senior executives, including the institute's director, had revealed evidence of such diversion.
However, during a hearing before the Delhi High Court on March 18, 2026, the ED acknowledged that no such preliminary analysis existed. The agency subsequently indicated that it would seek instructions regarding the withdrawal of the press release and eventually withdrew it in June, with the court recording the development.
“Notably, despite claiming that the Press Release was based on preliminary analysis of seized material, the respondent admitted before the Hon’ble Court that no such Preliminary Analysis Report existed and failed to prima facie substantiate the allegations,” FIITJEE said in a recent press note.
The ED investigation had originated from an FIR registered by the Delhi Police's Economic Offences Wing after parents complained that several FIITJEE centres had abruptly shut down despite collecting fees from students. Based on this complaint, the ED carried out searches at the residences of institute executives, including director D.K. Goel, and at some premises in Gurugram.
Before the High Court, FIITJEE argued that the press release contained incorrect facts and violated an Office Memorandum issued by the Ministry of Home Affairs, which requires official media briefings to remain factual and avoid emotional or judgmental language.
“The prima facie perusal of the press release would prima-facie indicate that judgmental aspersions are made. The Clause VII of the Office Memorandum dated 01.10.2010 clearly states that no opinionated and judgmental statements should be made by the police while briefing the media,” the Delhi High Court noted.
On May 6, 2026, the court further recorded that the ED's counsel had instructions to unconditionally withdraw the press release.
Although the court has not ruled on the merits of the money laundering investigation itself, the agency's case has come under scrutiny after it failed to substantiate the basis of its initial allegations against the coaching institute. Questions have also been raised over which provisions of the anti-money laundering law were attracted in the matter.
In its original statement, the ED had alleged that FIITJEE collected Rs 206 crore from students but failed to provide educational services following the sudden closure of some centres.
“During the searches, several incriminating documents and digital devices were seized, indicating serious financial irregularities. The collected funds were allegedly diverted for personal and unauthorised use, while faculty salaries remained unpaid,” ED had said, as per a report in The Hindu.
FIITJEE had rejected the allegations, maintaining that the closure of certain centres occurred because operators of some coaching units withdrew without prior notice.
“We are not aware of any evidence, however slight, found by any police authority anywhere in India so far. We are perfect in our value system, and there is no financial irregularity at the company level. If any managing partner has cheated FIITJEE and parents, then it could be a subject matter of investigation,” FIITJEE had told The Times of India.
The institute has since shifted from its employee-based operational model to a franchisee-run structure following the crisis of 2025.
After the withdrawal of the press release, FIITJEE said: “The unconditional withdrawal of the impugned Press Release vindicates the consistent stand of FIITJEE and its Directors that the allegations were baseless and unsupported by evidence.”
The press release, issued by the ED's Lucknow unit on April 26, 2025, followed searches at the residences of FIITJEE executives and offices in Noida and Ghaziabad. The agency had alleged large-scale diversion of student fee money and claimed to have identified Rs 206 crore as “proceeds of crime” linked to the institute, Bar and Bench reported.
It further stated that a preliminary analysis of seized material from senior executives, including the institute's director, had revealed evidence of such diversion.
However, during a hearing before the Delhi High Court on March 18, 2026, the ED acknowledged that no such preliminary analysis existed. The agency subsequently indicated that it would seek instructions regarding the withdrawal of the press release and eventually withdrew it in June, with the court recording the development.
“Notably, despite claiming that the Press Release was based on preliminary analysis of seized material, the respondent admitted before the Hon’ble Court that no such Preliminary Analysis Report existed and failed to prima facie substantiate the allegations,” FIITJEE said in a recent press note.
The ED investigation had originated from an FIR registered by the Delhi Police's Economic Offences Wing after parents complained that several FIITJEE centres had abruptly shut down despite collecting fees from students. Based on this complaint, the ED carried out searches at the residences of institute executives, including director D.K. Goel, and at some premises in Gurugram.
Before the High Court, FIITJEE argued that the press release contained incorrect facts and violated an Office Memorandum issued by the Ministry of Home Affairs, which requires official media briefings to remain factual and avoid emotional or judgmental language.
“The prima facie perusal of the press release would prima-facie indicate that judgmental aspersions are made. The Clause VII of the Office Memorandum dated 01.10.2010 clearly states that no opinionated and judgmental statements should be made by the police while briefing the media,” the Delhi High Court noted.
On May 6, 2026, the court further recorded that the ED's counsel had instructions to unconditionally withdraw the press release.
Although the court has not ruled on the merits of the money laundering investigation itself, the agency's case has come under scrutiny after it failed to substantiate the basis of its initial allegations against the coaching institute. Questions have also been raised over which provisions of the anti-money laundering law were attracted in the matter.
In its original statement, the ED had alleged that FIITJEE collected Rs 206 crore from students but failed to provide educational services following the sudden closure of some centres.
“During the searches, several incriminating documents and digital devices were seized, indicating serious financial irregularities. The collected funds were allegedly diverted for personal and unauthorised use, while faculty salaries remained unpaid,” ED had said, as per a report in The Hindu.
FIITJEE had rejected the allegations, maintaining that the closure of certain centres occurred because operators of some coaching units withdrew without prior notice.
“We are not aware of any evidence, however slight, found by any police authority anywhere in India so far. We are perfect in our value system, and there is no financial irregularity at the company level. If any managing partner has cheated FIITJEE and parents, then it could be a subject matter of investigation,” FIITJEE had told The Times of India.
The institute has since shifted from its employee-based operational model to a franchisee-run structure following the crisis of 2025.
After the withdrawal of the press release, FIITJEE said: “The unconditional withdrawal of the impugned Press Release vindicates the consistent stand of FIITJEE and its Directors that the allegations were baseless and unsupported by evidence.”
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