Mohan Babu University Faces Heat Over Rs. 26 Crore Fee Irregularities

October 8, 2025 Published by rajeshe092eb6a68

Mohan Babu University (MBU), a prominent private institution in Andhra Pradesh, is facing serious regulatory action after the Andhra Pradesh Higher Education Regulatory and Monitoring Commission (APHERMC) uncovered large-scale financial irregularities involving excess fee collection from students.

According to a report released by the APHERMC on September 17, the university collected ?26.17 crore more than the approved fee structure between 2022 and September 2024. The commission deemed this a clear violation of state norms and issued a ?15 lakh penalty against the institution. It also directed MBU’s management to refund the excess amount to affected students within 15 days.

The commission’s findings followed numerous complaints from parents and students, alleging that the Tirupati-based university had charged fees beyond the officially sanctioned structure. The complaints further claimed that MBU collected hostel and mess fees from students who did not reside on campus. A three-member panel was constituted to investigate the matter, ultimately confirming multiple financial discrepancies.

In a strong move, APHERMC has recommended that the Andhra Pradesh State Government revoke the university’s recognition. It has also notified national regulatory bodies — including the University Grants Commission (UGC), All India Council for Technical Education (AICTE), Pharmacy Council of India (PCI), and Indian Council of Agricultural Research (ICAR) — of its findings.

Mohan Babu University, which was established in 2022 after transitioning from Sri Vidyanikethan Engineering College, was granted autonomy under the Greenfield category. However, the recent revelations have cast a shadow over its credibility and future operations.

Reacting to the commission’s order, the university has approached the Andhra Pradesh High Court. The court has issued a temporary stay on the enforcement of APHERMC’s directives. The matter is now slated for hearing on October 14.