Mohan Babu University’s future uncertain as fee irregularities surface

- APHERMC recommended the withdrawal of its recognition for violation of fee norms
- It also ordered to repay Rs 26.17 cr excess fees it collected to students and imposed a penalty of Rs 15 lakh
Tirupati: The future of Mohan Babu University (MBU) in Tirupati has come under a cloud after Andhra Pradesh Higher Education Regulatory and Monitoring Commission (APHERMC) recommended withdrawal of its recognition for serious violations of fee norms. The commission found that the university had collected Rs 26.17 crore in excess fees from students, far beyond the amount prescribed by the government, and ordered that the sum be refunded within 15 days while imposing a Rs 15 lakh penalty.
The commission’s action followed a complaint lodged by Andhra Pradesh Parents’ Association in October 2024, alleging that MBU was collecting higher fees than permitted and even charging mess fees from day scholars. Acting on the complaint, the Chief Minister’s Office directed Higher Education Department to initiate an inquiry. A three-member committee of the commission conducted several surprise inspections from December last year and submitted a detailed report confirming large-scale violations.
According to the findings, the university collected excess amounts from students across multiple courses. BTech students were charged between Rs 5,000 and Rs 45,500 more than the approved fee, while degree, MSc, MBA, and MA students paid between Rs 18,000 and Rs 25,000 extra. BPharmacy and Pharma-D students were billed an additional Rs 25,000 to Rs 40,000, BSc (Hons) Agriculture students Rs 22,000 to Rs 33,000, and Paramedical and Health Care Sciences students Rs 40,000 to Rs 45,000 more than prescribed.
When questioned, the university claimed that students had voluntarily paid the higher fees, a justification the commission rejected. Despite earlier directions to refund the excess amount, the university reportedly failed to comply. The commission also recommended that University Grants Commission, AICTE, PCI, ICAR, and NCAHP treat MBU as derecognised and advised the State government to withdraw its recognition.
It suggested transferring the responsibility of current MBU students to Sri Venkateswara University and referring the financial irregularities of MBU and Sri Vidyanikethan Educational Trust (SVET) to Income Tax Department for investigation.
Meanwhile, MBU has approached High Court challenging the commission’s recommendations. In a statement, Pro Chancellor of university Vishnu Manchu said the matter is sub judice and that High Court has granted a stay on the commission’s orders. It maintained that the recommendations are incorrect and expressed confidence that the court will deliver justice. The university also alleged that selective information was being circulated to tarnish its image and urged the public not to be misled by unverified reports.
MBU stated that it remains one of India’s leading private universities with strong academic partnerships and a record of high student placements and reaffirmed its commitment to providing quality and inclusive education under the leadership of Chancellor Dr M Mohan Babu.
Reacting to the MBU controversy, CITU State Vice-President Kandarapu Murali demanded criminal action against the management of Mohan Babu University for allegedly collecting Rs 26 crore in excess fees from students. He also alleged that the management was harassing students and faculty by withholding original certificates, violating UGC regulations.
In a separate statement, All India Democratic Students’ Organisation (AIDSO) Tirupati City Secretary G Vunnathi strongly condemned MBU’s ‘rampant irregularities,’ accusing the university of manipulating attendance records and collecting an additional Rs 7,500 from each student in the name of condonation. She urged the government to act tough with such Institutions and strengthen public universities.

