Nagpur: Post board examinations, its fresh new coaching season in Nagpur and if sources are to be believed cash transaction worth crores of rupees is underway to get the mission admission accomplished! While this practice may sound usual business this far! However a new trend has emerged out of the dark to expose deep dark secrets of private coaching. Sources came up with startling revelation that many of the private coaching institutions in Nagpur have now sunk their teeth into the murky business of converting black money into white, thanks to its unaccounted income and discreet amount these institutions receive in cash from the hordes of students.
Owing to this very reason many top education barons and engineering colleges have either set up coaching classes in its properties or running a franchise of some the known names in coaching arena. Sources revealed that many of these wealth creators have jumped into the coaching business to put their income in fair books, dodging the income tax department through accounting tactics.
Insiders disclosed that the big names offering 100% entrance assurance to IIT and Medical colleges are the biggest culprits in the game. “These institutes have now extended their intake from the class 8 to justify their bigger corpus,” revealed a source.
Nagpur Today dug deeper into the entire scheme of things and came across with many such transactions which have been the part of big ‘fair and lovely’ scheme, a term coined by Congress general secretary Rahul Gandhi to take on the emerging trend of converting black money into white.
The Great Money Spinners
Insiders close to the faculty of these institutes revealed that parents approaching these institutes are often asked to pay in cash which remains a pre-condition to admission. These institutes push for full payment in single shot by applying pressure tactics and creating a sense of urgency before the parents.
A rough estimate shows that any coaching class usually runs 3-4 batches per day with the capacity in each batch varying from 25 to 100, depending on the size of the classrooms. So this way 80 to 90% of transaction per batch is done in cash.
Parents are provided with receipts too.
Tricky business
It is learnt from the reliable sources that only 50% of the net amount is shown in registers as white earnings while the rest of the income is kept under the wraps. Then to convert black money into white they show Rs 60,000 as fees for this 50% student as against a fee of Rs 40,000 charged from each student. This trick is applied to eat up a big pie of black money and then smartly converting it into white.
Nagpur Today View
That the coaching classes have been the huge money spinners for the last few years is not a hidden fact, the governing agencies should keep a close vigil on every transaction at the institutes operating multiple branches. Secondly to keep every money flow under tax net, a strict rule is applied that every transaction should be done through cheque. These guidelines, if implemented in letter and spirit would reveal real face of these so called temples of learning!
