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Business News/ News / India/  Education loan scam: Thousands of students duped in crores; here's what happened

CEO of a Bengaluru-based firm has been arrested for cheating almost 2,000 students for almost 18 crores. Reportedly, the management of this company had cheated each student for more than 2 lakh.

According to a report by Moneycontrol, the issue surfaced after a complaint by a 26-year-old student who had participated in the company's 24-month data course in December last year. Following the complaint, the CEO of the 'Geeklurn', Sreenivas was taken into custody while other key members of the organization including Chief financial officer Raman P C and Operations Head Aman are yet to be arrested.

According to the agreement with the students, the firm had to pay the EMI for the students until they secured employment. After getting a job, the burden of EMI payments would shift to students. However, the company allegedly stopped depositing the EMI into the student's account after the third month while demanding full payment from them citing that the agreement had been cancelled. 

Students, on the other hand, found it hard to make the payments since they had not yet completed the course and weren't employable yet.

After the initial complaint, 13 more students came forward and alleged that the company had duped money from them under similar pretences. 

Meanwhile, Moneycontrol quoted Senior police officer P Krishnakanth as saying that similar fraud schemes by Geeklurn have been taking place in other states like Mumbai and Andhra Pradesh. 

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Updated: 03 Jun 2023, 01:48 PM IST
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