Government has spent so much on their education in IIT's. Now they are starting coaching institutes since it is a big business in India. Government has provided funds to these people so that they can contribute to the research work in development of country. Any how students should understand, Top scientists and many big company CEO's not came from IIT. overall knowledge of the subject is required not just related to that competitive exam syllabus. Let us hope students should concentrate more on concept than exams.
This not new, there are several institutes all over the india to prepare for IIT, NIT & medical. if you have to be noble then look at the Patna's 'Super 30', which give 100% delivery for almost no cost.