Central GST officials have arrested the director of the Rao IIT Academy for misappropriation of tuition fees collected through colleges and coaching classes amounting to Rs 14 crore. The academy is the same whose Sion-based college recently was derecognised by the state education department for running a ‘’ghost” college. mid-day, since November 2020, had reported hwo despite colleges exiting on paper, they didn’t exist in reality.

The Academy has been under attack for the past few years after it allegedly enrolled students in its integrated colleges, but students never received any education either on campus or in coaching classes. When parents approached the police, the directors managed to secure anticipatory bail in the matter.