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The Andhra Pradesh Higher Education Regulatory and Monitoring Commission (APHERMC) has found various irregularities in the Mohan Babu University (MBU) located in Tirupati. MBU is a private university run by the family of veteran Telugu actor Mohan Babu. The Commission has directed the University to refund the excess fees of Rs 26 crore collected from its students, and also recommended its derecognition by the University Grants Commission (UGC) and All India Council for Technical Education (AICTE).
A three-member Committee that investigated allegations of excess fee collection at MBU found the following issues – excess fee collection, non-disclosure of income, irregularities in attendance management, and withholding of original certificates of the students. From B Tech students alone, the total excess fee collected from the academic year 2022-23 up to September 30, 2024 was found to be over Rs 26 crore.
The Committee was formed after the APHERMC received a complaint from the Parents Association of Andhra Pradesh alleging excess fee collection.
In an order dated September 19, the APHERMC mentioned that it had previously issued a show-cause notice to MBU after imposing a penalty of Rs 15 lakh.
The Committee conducted a surprise inspection of the University in December 2024, and found that the University management was collecting excess fees of Rs 5,000 to Rs 45,500 across courses under various heads besides the tuition fee.
The University was also charging students Rs 7,500 for correcting attendance that was wrongly marked absent, the APHERC alleged.
The excess fees were collected under various heads including “career development fees,” according to APHERC.
APHERC said that MBU claimed it used the extra fees to fund “skill development and employability programs.” However, they alleged that transferring the excess money to its parent body, the Sree Vidyanikethan Educational Trust, under this pretext was an attempt to hide MBU’s actual income.
In its order, APHERMC asked the University to refund the excess fees of Rs 26 crore to students. It also recommended that the University Grants Commission (UGC), All India Council for Technical Education (AICTE), and the government of Andhra Pradesh to derecognise Mohan Babu University.
It also recommended the government of Andhra Pradesh to intimate the Income Tax Department “of illegal and irregular way of maintenance of accounts” of MBU and Sree Vidyanikethan Educational Trust.
Mohan Babu is the Chancellor of the University, while his elder son Manchu Vishnu is the Pro-Chancellor.
Recently, Manchu Vishnu and his step-brother Manchu Manoj had a public fallout over a property dispute. In the feud Mohan Babu sided with Vishnu. Following this, Manoj had issued a statement saying that his conflict with Vishnu escalated after his public support to Mohan Babu University students and local business who were allegedly being exploited by Vishnu and his associate Vinay Maheshwari, who is the Executive Director at MBU.
Meanwhile, reacting to media reports over APHERMC’s order, Manchu Vishnu issued a statement saying, “MBU firmly opposes the (APHERMC’s) recommendations. Please note that these are mere recommendations that are being examined by the High Court and are sub-judice. The Court has issued a stay on the recommendations in MBU’s favour.”
The University has reportedly filed a writ petition challenging the APHERMC order, claiming that the penalty imposed by APHERMC was beyond its jurisdiction and against the Andhra Pradesh Private Universities Act, 2016 and Rules, 2017. The High Court has granted an interim stay on the Commission’s order.
Besides running educational institutions, Mohan Babu was also involved in politics. A former member of the Telugu Desam Party (TDP), he later joined the YSR Congress Party in 2019. Vishnu’s wife Viranica is the cousin of former Andhra Pradesh Chief Minister and YSRCP chief YS Jagan Mohan Reddy. Manoj’s wife Bhuma Mounika is also from a political family. Her sister Bhuma Akhila Priya is a TDP MLA.