Nine companies, mainly startups, have been blacklisted for a year by the Indian Institute of Technology-Bombay (IIT-B). These firms are on a list that names 31 firms barred from recruiting IIT students across India.
The decision follows a series of complaints against these firms for making last-minute changes to their original offer during the 2015-16 placement season, delaying the joining date for students and using fake office addresses.
The names of these nine institutes were revealed by IIT-B on Thursday.
A blacklist of 31 companies was drawn up on August 14 by the All India Placement Committee (AIPC), but the names were released after IIT-B revealed on Thursday the nine companies they had banned from campus recruitments.
The convener of the committee, Prof Kaustubha Mohanty, said the exercise is a precaution taken in the interest of students in all 23 IITs.
“We have decided now that when we ask a particular company to register with us, we will try to ask for data on their sources of funding, statements of accounts, balance sheets and number of employees,” Mohanty said. “We used to ask for a lot of details earlier too, but not so stringently.”
The banned companies will have to go through intense scrutiny before they are allowed to recruit students again, after the one-year ban.
Around 25 students from IIT-B were affected by the nine banned firms. The institute said it will now be cautious with startups. “Several other firms have also been warned. Students look up to their job offers very seriously and to have the offers revoked at the last minute plays with the morale of a student. We shall not tolerate such behaviour,” said a member from IIT-B’s placement office.
“Startups will be allowed after a good background check, such as whether they have proper funding, and what their growth prospects are. Our aim is to avoid job offers being revoked or delays in joining date in the next placement season,” said Dipesh Chauhan, placement manager at IIT-B.
After the decision to ban the firms, there was a meeting at IIT-Kanpur of placement coordinators from all IITs to draw up the blacklist. Sources said it was also decided at this meeting that e-commerce giant Flipkart, along with a few other companies, will not be given the first day slot in the upcoming admission season. Flipkart was one of the companies that delayed appointments by a few months.
Of the nine firms blacklisted by the Mumbai institute, five, including GPSK, Johnson Electric (China), Portea Medical, Peppertap and Cashcare Technologies, were blacklisted for revoking offers. Two companies, LexInnova and IndusInsight, were blacklisted for delaying joining dates. LeGarde Burnett Group has been blacklisted not just for revoking their initial offer, but also because it later came to light they had not even provided proper office addresses. Another start-up, Mera Hunar, was on the list as they had registered with a different name and ended up hiring students for another startup altogether.
“We cannot reveal names of all the companies on the list, but individual IITs are revealing names of firms they have decided to blacklist,” said a senior AIPC official.