Edtech startup entrepreneur arrested for defrauding students to the tune of Rs 18 crore

The CEO of GeekLurn, an edtech startup that offers online data science courses, has been arrested on charges of defrauding students by making false promises of securing educational loans for them and misappropriating the sanctioned funds.

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The rise of EdTech startups in India is primarily driven by the increasing demand for online education and upskilling opportunities. However, amidst this educational transformation, the edtech sector has also witnessed a concerning rise in fraudulent activities. One such incident has taken place in Bengaluru, where an ed-tech startup entrepreneur is arrested for allegedly defrauding thousands of students.

The CEO of GeekLurn, an edtech startup that offers online data science courses, has been arrested on charges of defrauding students by making false promises of securing educational loans for them and misappropriating the sanctioned funds. The scam reportedly affected nearly 2,000 students, resulting in a cumulative amount of Rs 18 crore.

Each student’s loan amount exceeded Rs 1.5 lakh. The arrested individual, identified as Sreenivas, is the CEO of GeekLurn. The police are also looking out for his colleagues Raman P C – Chief Financial Officer – and Aman Mishra – Head of Operations.

GeekLurn, situated near Southend Circle in Jayanagar, operated the alleged fraud scheme, which extended to neighbouring states, prompting Maharashtra and Andhra Pradesh authorities to seek custody of the prime accused.

The case came to light when a 26-year-old student enrolled in GeekLurn’s 24-month data science course, filed a complaint against the CEO and other executives, accusing them of cheating.

The scam revolved around GeekLurn purportedly obtaining loans in students’ names against course fees. Using the strategy, the start-up was luring the students by claiming to offer the course without investing a single penny from their pocket.

As per a LinkedIn post shared by the complainant, GeekLurn had initially promised to handle the loan installments and deposit equated monthly installments (EMIs) into the students’ accounts as a form of “scholarship” until they secured employment. However, after only two months, GeekLurn ceased making the payments, leaving the students saddled with the financial burden of the loans.

The student, who had not completed the course and was unemployed, found it impossible to meet the payment obligations.

Following the initial complaint, 13 additional students stepped forward, sharing similar allegations of deception by Geeklurn officials. The prime accused, Sreenivas, has been interrogated for further interrogation.

The incident sheds light on the importance of vigilance and due diligence when selecting educational programs. It also highlights the need for robust regulations in the rapidly growing EdTech sector in India.

This is not the only incident of its type when an Indian startup has duped their customers, vendors or students for crores of rupees. During the last few years, several cases of alleged fraud and malpractice have come to light, where unsuspecting customers/students have been deceived by unscrupulous startups promising false outcomes, misusing funds, and engaging in unethical practices.

The surge in the Indian startup ecosystem has been accompanied by a concerning increase in fraudulent activities, with startups being implicated in cases of duping investors, customers, and vendors. Data reveals a worrisome trend, indicating a rise in the number of fraud incidents involving startups in recent years. According to reports, the instances of financial irregularities, false promises, and unethical practices have led to significant financial losses for stakeholders. The magnitude of the problem is reflected in the growing number of complaints and legal actions filed against fraudulent startups. This disturbing trend not only erodes trust and confidence in the Indian startup ecosystem but also highlights the pressing need for stricter regulatory measures, robust due diligence processes, and heightened vigilance to safeguard the interests of investors, customers, and vendors.

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