Is Kota Factory Fake?

The scene where the Physics teacher and the student had a conversation shows the actual reality of Kota.

The talk goes on as-
The Teacher asks - Kota hii kyun?
Student - Sir, yahan competition hain, students hain to selection ho jana chahiye.
Teacher - Agar nahin hua too?
Student - Sir, 12th to karni thi, yaha se ho jayegi, koi nuksaan nahi hai.
Teacher - Nuksaan hai, yahi to nahi samjhte hain log.
Students Kota se chale jaate hai, Kota kabhi students se nahi jata. Poore 2 saal apni zindagi ke tum yaha bitate ho. Gharbaar, dost, rishtedaar sab peeche chhoot jaate hai.
Kiski kaha sarkaar bani, kiski kisse shaadi hui, IPL kisne jeeta fir ye sab matter nahi karta life me. Tum bas yaha IIT IIT karte rehte ho. Mila to theek, chill hai. Nahi mila to? Poore 7 saal lag jaate hai vapas apne aap ko paane me fir (4 saal College ke, 3 saal job ke), fir chahe koi bhi college kyu na mil jaaye accha nahi lagta kyuki IIT nahi hai na.
Translation -
(The faculty asks, why Kota only? To which the student says - Kota has that environment, has such students, has that competition so therefore chance increases of being selected. Then the teacher asks, what if you do not get selected? Student replies - Anyhow I was going to complete 12th, so it will be done from here, see there's no loss. The teacher then explains the loss and tragedy if you do not get selected even after spending 2 years here. He says, students go away from Kota, Kota never gets out from student. You had came here far away from home leaving your family, friends, relatives and everyone and dream of only 1 thing here - IIT. If you get it, there's chill, but if you failed, you will get into depression and that will continue for 7 years, 4 years of college and 3 years of job.
Who won the election?, Who won the IPL? Who married whom? Nothing will matter then in life. And then too if you get into any other good college, you will not like it, because it will not be IIT)

So, Its not fake.