In a shocking revelation, Mohan Babu University (MBU) in Tirupati has been caught in a ₹26-crore fee scam following an inquiry by the Andhra Pradesh State Council of Higher Education (APSCHE). The university reportedly collected excess fees from students for nearly three academic years, violating the fee structure approved by the regulatory body.
The incident has sparked outrage among students and parents, raising serious concerns about transparency and accountability in private educational institutions across the state. The APSCHE has imposed a ₹15-lakh fine and directed the university to refund the excess fees to affected students within 15 days, warning that failure to comply could lead to cancellation of the university’s recognition.
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How the Scam Was Uncovered
According to official reports, a random audit conducted by the APSCHE found large discrepancies between the approved fee structure and the actual fees collected from students in engineering and professional courses. Between 2021 and 2024, the university allegedly charged students additional fees under “infrastructure,” “special facilities,” and “lab development” categories — none of which were authorized.
The investigation revealed that the university had accumulated more than ₹26 crore in unauthorized collections. A detailed report submitted to the state government confirmed the excess amounts and recommended immediate recovery and disciplinary action.
Penalty, Refund Orders, and Possible Recognition Cancellation
Acting on the report, the APSCHE has issued an official notice to Mohan Babu University, ordering it to refund all excess fees to students within 15 working days. The regulatory body also levied a ₹15-lakh penalty as part of its disciplinary action.
The council has made it clear that failure to comply will result in withdrawal of recognition and de-affiliation from the state higher education system. This could potentially jeopardize the university’s ability to admit new students in the upcoming academic year and may even lead to a complete suspension of its degree programs.
Student Reactions and Campus Response
News of the scam spread quickly across social media, with hundreds of students and alumni expressing anger and disappointment. Many parents have demanded that the refund process be made transparent and monitored by a third party.
Meanwhile, the university administration has reportedly denied intentional wrongdoing, claiming that the excess amount was collected “due to administrative miscalculations.” However, student associations have rejected this explanation, stating that such a large-scale overcharge could not have occurred without deliberate intent.
A student leader from Tirupati commented: “We trusted the university’s reputation, but this breach of trust is unacceptable. The government must ensure strict action so that such exploitation never happens again.”
Broader Impact on Private Universities
The Mohan Babu University incident has reignited the debate on the regulation of private educational institutions in Andhra Pradesh. Experts argue that many private universities continue to impose hidden fees, citing vague reasons like campus maintenance or digital access.
The APSCHE’s action is being seen as a warning to other private institutions to adhere strictly to approved fee structures. Education activists have called for stronger enforcement mechanisms, including mandatory public disclosure of fee breakdowns and regular audits.
For now, all eyes are on Mohan Babu University — whether it complies with the refund order or faces the consequences of losing its recognition.
