Mohan Babu University Faces Major Controversy Over Excess Fees and Possible De-Recognition
Mohan Babu University (MBU), located in Rangampeta village near Tirupati, Andhra Pradesh, and established by veteran Tollywood actor Manchu Mohan Babu, finds itself embroiled in a serious controversy regarding financial irregularities and excess fee collection. The Andhra Pradesh Higher Education Regulatory and Monitoring Commission (APHERMC) has accused the university of collecting Rs 26.17 crore in excess fees from students between 2022 and 2024 and recommended its de-recognition. The case has stirred intense reactions from the university management, students, parents, and regulatory authorities.
Allegations and Investigation Findings
Following complaints from the Parents’ Association of Andhra Pradesh, APHERMC conducted a detailed investigation and found that MBU collected fees well above the government-permitted limits. These included charges for tuition, building, transport, and other heads. Fees were allegedly collected in excess from students admitted under government and conveners’ quotas. The commission imposed a Rs 15 lakh fine on the university and ordered a refund of the excess Rs 26.17 crore to affected students. Moreover, APHERMC recommended revoking the university’s recognition and requested national regulatory bodies like UGC, AICTE, PCI, and ICAR to act accordingly.
University Management Response and Manchu Vishnu’s Reactions
The management of Mohan Babu University, led by Pro-Chancellor Manchu Vishnu, rejected the allegations, calling them baseless and damaging. Vishnu Manchu strongly criticized the APHERMC for publicizing incomplete and interim findings, describing it as an attempt to malign the university's reputation ahead of the judiciary's final verdict. He affirmed that the university followed all regulations and “fully cooperated” with the authorities during the inquiry. Vishnu also highlighted that the fees question is complex and framed in a manner that misleads the public.
He expressed concern over the anxiety caused to students and parents because of such controversies but assured them that the university remains committed to quality education and transparency. Vishnu is confident the courts will exonerate the institution once the facts and documents are examined comprehensively. Their legal team has obtained a stay order from the Andhra Pradesh High Court, which temporarily halted the punitive actions and refund orders by APHERMC.
Legal Developments and Current Status
The Andhra Pradesh High Court has instructed APHERMC to upload its interim orders officially and has adjourned the main hearing to October 14, 2025. The court's interim stay protects the university from losing recognition and delays the refund order pending judicial review. The filings and proceedings remain ongoing with intense public and media scrutiny.
Public and Stakeholder Reactions
Reactions around this issue remain mixed:
Several parents defended the university, claiming they willingly paid extra fees for enhanced educational facilities, better training, and placement opportunities. They believe that MBU offers superior infrastructure and international collaborations compared to many institutions in Andhra Pradesh.
Conversely, some parents and student groups have welcomed APHERMC’s intervention as essential for accountability and transparency in private higher education. They argue undue fee collection cannot be ignored and supports disciplining private institutions.
Political and student organizations demanded criminal action against the university management, citing harassment of students by withholding original certificates and manipulation of attendance records.
Students expressed anxiety over the uncertainty about the university’s recognition, refund of fees, and potential impact on their careers and academic progress.
Institutional Developments Amid Controversy
Despite the ongoing issues, Mohan Babu University continues other initiatives like establishing a Farmer's Advisory Centre to support local agriculture, reflecting ongoing academic and community engagement efforts.
Summary
Mohan Babu University is currently under intense scrutiny for allegedly collecting Rs 26.17 crore excess fees from students between 2022-24, leading to APHERMC’s recommendation for de-recognition. The university firmly disputes these charges and has obtained a court stay on adverse actions. Pro-Chancellor Manchu Vishnu has been vocally defensive, condemning APHERMC’s approach and assuring stakeholders of the university’s integrity and adherence to regulations. The case highlights challenges in regulating fees in private universities and showcases diverse reactions from parents, students, regulatory bodies, and political organizations. The final judicial verdict awaited in mid-October will determine the future course for this institution.