NIIT Franchisees On War Path, But Run Into Legal Restraint

New Delhi: | Updated: Oct 22 2002, 05:30am hrs
The feud between computer education company, NIIT and a group of its franchisee computer centre owners has taken a new turn. While the NIIT Franchisee Association (NFA) formed by these dissatisfied franchisee owners, in a media conference, alleged arm-twisting and intentional delays in settling their accounts by the company, NIIT has got a stay order from the high court against NFA restraining its members for implementing its objectives.

In an e-mail response to eFE, NIIT vice-president (legal) and company secretary KK Darbha said, The Delhi High Court has today issued a stay order restraining the NFA from implementing the key objects in its memorandum of association.

Earlier, association members accused NIIT of bullying its business partners and demanded a higher revenue share of 90 per cent as against 35-60 per cent at present offered by the company.

The sharing ratio should be 90:10 where 10 per cent of NIITs share should take care of royalty, course material, publicity and other hidden expenses, NFA president Suresh Gupta said.

NFA, which claims a confirmed membership of 165 business partners all over the country, also charged NIIT with not honouring its commitment of providing course material and faculty.

The association also called for early settlement of dues to franchise partners. NFA members said that despite repeated attempts, NIIT had not responded to their demands while adding that the association would resort to a non-cooperation movement until the company took cognisance of their demands.