"We have registered an FIR under Section 420 of IPC against IIPM Dean Arindam Choudhari and his father Malayendra Kisor Chaudhuri, who is a Director, based on the UGC complaint. We are probing the matter," Joint CP (Crime) Ravindra Yadav said.
A notice has been sent to both of them to join the investigation, police said.
The UGC, in its complaint, has said that despite the fact its courses are not authorised, the institute was "fooling" the students by charging a hefty fee from them.
Chaudhari said in a statement it was sad that some sections of the media have decided to pick up a case that was 6 months old and wondered how this could amount to cheating.
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"UGC and AICTE keep themselves in news by targeting IIPM with their lies because we have stayed consciously out of their purview and accused them of massive corruption", he said.
"We have been cooperating with the police ever since the first notice came and will continue to do so as law abiding citizens," he added.