The director of the Rao IIT Academy, Vinay kumar Pandey, has been arrested by Central GST officials for allegedly misappropriating tuition fees collected from colleges and coaching classes, amounting to Rs 14 crore.
The academy has recently come under fire after one of its colleges was de-recognized by the state education department for being a non-existent college. This incident has raised concerns about the academy’s other institutions, and parents have accused the academy of enrolling students in integrated colleges without providing any education.
When parents approached the police, the directors of the academy managed to secure anticipatory bail. However, the Central Goods and Services Tax officials have been investigating the academy for possible tax evasion.
During their investigation, officials discovered that Rao Edusolutions Pvt Ltd, which operates under the brand name Rao IIT Academy, had allegedly been collecting GST at 18% on tuition fees but declaring it as unrelated and exempt services.
The arrest was made under Section 69 of the Central Goods and Services Tax Act, 2017, for contravention of Section 132 (1)(d) of the same Act. On March 24, 2023, officials sealed the academy’s administrative office at Sakinaka and arrested Vinay kumar Pandey under relevant sections of the Central Goods and Services Tax Act, 2017. The accused has been remanded to judicial custody for the non-bailable offence charged against him.
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