iipm scam: A tale of deception, fraud and scam

 

What is IIPM?

The Indian Institute of Planning and Management, commonly known as IIPM, was a private education group founded by Arindam Chaudhuri in 1994. Based in New Delhi, IIPM offered undergraduate and postgraduate degree programs in management, planning, and business administration.

On the surface, IIPM presented itself as one of India’s top B-schools, promising world-class education and claiming partnerships with reputable foreign universities. However, controversy has long surrounded IIPM, with widespread allegations that its credentials and programs were fraudulent.

In this post, we examine the evidence surrounding the IIPM scam, how it operated, the impact it had on students, and why it ultimately faced government sanctions and closure. We’ll also discuss lessons learned to avoid similar deceitful “educational institutes” in the future.

How the IIPM scam worked

At the core of the IIPM controversy were two key fraudulent practices:

1. Fake affiliations and degrees: IIPM falsely claimed programs were accredited overseas and promised foreign degrees that did not truly exist.

2. Misleading advertising: IIPM used Bollywood celebrities and exaggerated success stories to lure students with unrealistic promises of high-paying jobs and international opportunities.

Students were not made aware IIPM lacked any valid academic accreditation and its degrees held no legal standing. Once enrolled, withdrawing was made very difficult through threats and pressure. With no legitimate qualifications, victims found degrees were worthless for employment.

Reports show IIPM may have scammed billions from tens of thousands of hopeful students through this elaborate deception spanning nearly two decades until government intervention.

Impact on victims

Being defrauded by IIPM had immensely damaging consequences for those deceived into its pseudo-educational programs:

• Worthless degrees: Victims graduated without a credential recognized by any legitimate institutions or employers.

• Career disruption: Time and money invested couldn’t be reclaimed, set victims back professionally and personally.

• Financial losses: Tuition for the fake courses totaled in the hundreds of thousands per student on average.

• Emotional toll: Entire life plans were ruined, leading to stress, depression and even suicide in some tragic cases.

• Legal issues: Some students faced arrest for holding an illegitimate degree they were misled into obtaining.

The massive IIPM scam shattered victims’ lives and dreams while profiting those orchestrating the deception for years on end.

Signs it was a scam

In hindsight, there were clear warning signs IIPM’s incredible promises did not align with reality:

• Doubts among educators: Legitimate academic bodies distanced themselves and debated IIPM’s legitimacy.

• Absence of accreditation: No verified partnership with any accredited foreign university could be proven.

• Inflated claims: IIPM boasted impossible success rates and placed photos of random foreigners as supposed “faculty members.”

• Debt traps: Hidden costs and aggressive debt collection tactics surfaced regularly from victim reports.

• Support lacking: No established network of alumni furthered skepticism of IIPM’s advertised prominence and influence.

• Celebrity promotions: Overreliance on fame rather than merits raised credibility questions from the beginning.

Had these inconsistencies and missing credential details been properly scrutinized, many may have avoided the IIPM deception.

Government crackdown

As evidence against IIPM mounted, authorities were forced to intervene on behalf of exploited students:

• 2005: UGC order barred IIPM from using “university” or “degree” in its name.

• 2010: Delhi High Court recognizes IIPM qualifications as invalid and directs it cease operations.

• 2011: AICTE removes IIPM from its approved list and cancels its management programs.

• 2015: Last IIPM campus in Gurgaon ordered shut by District Court for violations.

• 2017: Founder Arindam Chaudhuri sentenced 6 months imprisonment for contempt by Supreme Court.

Authorities worked to both stop IIPM’s fraudulent practices and provide some accountability, though the systemic damage had already impacted thousands of lives.

Lessons learned

The fallout from India’s largest “educational” scam offers important consumer protection takeaways:

• Verify accreditation and affiliations directly with official sources

• Beware of aggressive sales tactics and impossible outcomes

• Research beyond promotional claims using independent reviews

• Watch out for “education” providers lacking transparency

• Consider legal recourse as a group if you suspect fraud

• Demand accountability from all institutions regarding credentials

While IIPM victims cannot undo the past, spreading awareness may help others avoid similar deception. With due diligence, legitimate opportunities can still be pursued.

In conclusion, the audacious IIPM scam underscores the importance of critical evaluation and corroboration when making high-stakes education choices. While some scammers will always try to exploit the hopeful, consumer vigilance makes their harmful operations much harder to sustain.