Mohan Babu University (MBU) in Tirupati is under scrutiny after the Andhra Pradesh Higher Education Commission uncovered a significant fee scandal, where the university collected ₹26.17 crore in excess fees from students. The Commission has recommended withdrawing the university's recognition due to violations in fee structures and irregularities in the collection process.

The university has been directed to refund the excess fees to students within 15 days, and a fine of ₹15 lakh has been imposed. While the university has filed a petition with the Andhra Pradesh High Court, which granted a temporary stay on the Commission's orders, the situation remains unresolved. Pro-Chancellor Manchu Vishnu has expressed opposition to the Commission's recommendations, asserting that the matter is still under judicial review.

This controversy casts a shadow over the credibility of Mohan Babu University, which was established in 2022, and its future is now dependent on the outcomes of the legal proceedings.