Students Left Stranded As UPSC Academy Collapses Amid Growing Scrutiny Of India's Coaching Industry
The incident has brought spotlight on the expanding coaching industry in India. Reports Surabhi Gupta
Published : June 4, 2026 at 8:41 PM IST
New Delhi: When Abhishek Shukla arrived in Delhi in 2023 to prepare for the Union Public Service Commission (UPSC) examination, he believed he had found an opportunity that could change his life.
Like dozens of other aspirants from economically weaker families, Shukla was drawn to a coaching programme promoted on YouTube by a man who claimed to be launching an IAS academy aimed at helping talented students who could not afford expensive coaching. The offer appeared extraordinary: UPSC coaching, accommodation, food, WiFi and other facilities for an entire year at just ₹30,000.
For students coming from small towns and modest backgrounds, it sounded like a dream. "We felt there could not be a better opportunity than this. Our families supported us because the cost was low and the promises were big," Shukla told ETV Bharat.
Around 30 to 35 students from different states joined the programme and moved to Delhi. However, according to Shukla, problems began surfacing within a few months. Teachers were not attending classes regularly, promised faculty members never arrived, and several subjects were left untaught.
As students began questioning the management, tensions escalated. "There could be no compromise on studies. If there were problems with other facilities, we could adjust, but not with education," he recalled.
Within less than three months, the coaching programme allegedly collapsed. Students who had left their homes and invested their savings suddenly found themselves stranded in Delhi.
"There were girls among us whose parents had sent them after much hesitation and trust. When the coaching decided to shut down, nobody knew where they would go or how they would continue their studies," Shukla said.
The students organised themselves, held meetings with parents and demanded either a solution or a refund. After prolonged disputes, some students received refunds through cheques while others struggled to recover their money.
The closure also left many without basic facilities. "Suddenly the PG was shut. Students had no arrangements for food, utensils or accommodation. Some took up part-time jobs. Many left Delhi because their parents lost trust in the entire process," he said.
Three years later, Shukla says some of those students are still struggling to continue their preparation. "Even today, if you visit the area, you will find students wearing the same clothes for years while trying to continue their studies. It was a huge betrayal. If we had not united, I don't know what would have happened to us," he said.
Shukla's experience highlights a growing concern surrounding India's booming coaching industry, which continues to expand despite mounting complaints, regulatory action and concerns about student welfare.
According to the Ministry of Consumer Affairs, over 60 coaching institutions have received notices from the Central Consumer Protection Authority (CCPA) for misleading advertisements and unfair trade practices. Thirty-two institutions have collectively been fined over ₹1.39 crore.
The latest penalties were imposed on Motion Education Private Limited and Career Line Coaching in Rajasthan's Sikar district. Regulators found that the institutes used photographs of IIT-JEE and NEET toppers in advertisements without clearly disclosing whether those students had actually enrolled in regular classroom programmes.
Selling dreams and success stories
The coaching industry's marketing practices have increasingly come under scrutiny. Investigations by the CCPA found that many institutions advertise "100 per cent success rates" or claim exceptionally high selection figures by counting students who attended only short-term test series, counselling sessions or mock interviews.
In one prominent UPSC-related case, coaching institutes collectively claimed over 3,500 successful candidates in a year when only 933 candidates had actually cleared the examination nationwide.
Experts say such practices exploit the aspirations of students and parents. Birender Singh Suryavanshi, Chairman of the Lal Bahadur Shastri Skill Development Centre, said, "It is completely unethical for coaching centres or educational institutions to claim credit for students who succeeded through their own efforts or while studying elsewhere. Education is built on trust, and when institutes make unrealistic promises or falsely advertise student achievements, they mislead both parents and students."
He said the increasing commercialisation of education has transformed learning into a highly competitive business where marketing often overshadows academic outcomes.
Refund disputes on the rise
Financial disputes have emerged as another major concern. National Consumer Helpline data shows complaints against coaching institutes rose from 4,815 in 2021-22 to 5,351 in 2022-23 before surging to a record 16,276 in 2023-24.
Many complaints involve fee refunds, misleading promises and disputes over services that were never delivered. To address the issue, the Department of Consumer Affairs launched a mission-mode initiative that helped secure refunds worth more than ₹1.15 crore for affected students.
Kuriakose VK, Chief Academic Consultant at St. Thomas Schools, Ghaziabad, advised parents to independently verify institutional claims before enrolling their children.
"Parents should verify rank holders through official examination records, speak to current students and parents, and ensure that the faculty advertised are actually teaching. The refund policy should also be carefully examined and documented before fees are paid," he said.
Safety and mental health concerns
The rapid expansion of coaching hubs has also triggered concerns about safety and infrastructure. The Ministry of Education's guidelines prescribe minimum space requirements and safety standards for coaching centres. However, reports from coaching hubs such as Old Rajendra Nagar, Mukherjee Nagar and Prayagraj indicate that many institutions continue operating from overcrowded buildings, basements and premises lacking proper fire safety clearances.
At the same time, mental health concerns continue to mount.
According to NCRB data, coaching hubs such as Kota witness more than 25 student suicides annually on average. Education experts say relentless competition, rank-based pressure and unrealistic expectations are contributing to rising levels of anxiety among students.
"The pressure is already very high. Students are constantly worried about exams, rankings and competition. When coaching institutes make big promises and fail to deliver, it affects students' confidence and mental well-being," said Aditi Sharma, a NEET aspirant in Kota.
Harsh Yadav, a coaching student in Prayagraj, added, "My parents spent a large amount of money on coaching because we believed it would improve my chances of success. When reports of misleading claims and irregularities come out, it creates uncertainty and makes students wonder whether they made the right choice."
Calls for stronger regulation
Educationists and consumer rights advocates are increasingly calling for stricter regulation of the sector. Sangeeta Bhatia, Principal of KIIT World School, said, "Any institute that promises results more loudly than it demonstrates learning deserves careful scrutiny. Parents should look beyond advertisements and ask for transparency."
Awadhesh Kumar Jha, Principal of CM SHRI School, said parents should be wary of exaggerated promises and aggressive admission campaigns. "Education is a long-term investment, and the decision should be based on substance rather than advertisements," he said.
Prof. Bejon Kumar Misra, an international consumer policy expert, believes stronger government intervention is necessary. "The growth of coaching classes shows that educational institutions are not fully performing their role, making education increasingly expensive and unaffordable. The government must regulate all coaching institutions, establish performance-based ratings and take strict action against sub-standard operators," he said.
For students like Abhishek Shukla, the lesson has been harsh and costly. "Never trust such promises blindly," he said. "Many students come from faraway places with dreams and limited resources. If things go wrong, they are the ones who suffer the most."
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