Mahesh Tutorials Shuts 33 Maharashtra Centres, Leaving 2,500 Students In Limbo; Experts Warn Of Growing Stress In Coaching Industry

The sudden closure of Mahesh Tutorials centres has disrupted the academic plans of thousands of students, while industry experts say rising competition, financial stress and poor regulation are exposing cracks in India’s booming coaching sector.

By Vidhi Lalla 

Around 2,500 students across Maharashtra have been left searching for alternative coaching classes after Mahesh Tutorials abruptly shut 33 centres despite completing admissions and collecting fees for the 2026-27 academic year.

The closures, which reportedly took effect from July 10 following an internal meeting of branch heads on July 7, have also affected teachers, administrative staff and parents who are now seeking clarity on classes, refunds and the future of their children’s education.

The coaching chain is operated by MT Educare Ltd., once one of Maharashtra’s largest education brands.

Company Under Insolvency Since 2022

The sudden shutdown comes against the backdrop of MT Educare’s prolonged financial troubles.

The National Company Law Tribunal (NCLT) admitted the company into insolvency proceedings in December 2022 after creditors initiated action over unpaid dues. Reports indicate that the company’s latest audited financial statements reflected mounting losses and liabilities of nearly ₹74 crore.

In 2024, the NCLT also admitted personal insolvency proceedings against founder Mahesh Shetty, who had acted as a personal guarantor for certain company loans.

Industry observers say the closures highlight how financial instability can directly affect students when educational institutions continue admissions despite operational uncertainty.

Rise, Fall And Ownership Changes

Mahesh Tutorials was founded by Mahesh Shetty in 1988 and gradually grew into one of Maharashtra’s best-known coaching brands, expanding to nearly 250 centres across India over three decades.

The institute later rebranded under MT Educare, diversified into IIT-JEE and NEET coaching, launched an education app and went public through an IPO in 2012.

In 2018, Zee Learn Ltd. acquired a majority stake in MT Educare. Mahesh Shetty stepped down from the company in 2019, with his resignation taking effect in April 2020.

Industry experts believe the brand gradually lost momentum after the leadership transition, while increasing operational costs and financial challenges further weakened the business.

Coaching Industry Becoming Increasingly Crowded

Education experts say the Mahesh Tutorials episode is not an isolated incident.

The collapse follows similar disruptions witnessed last year when several FIITJEE centres across India suspended operations due to financial difficulties.

According to education sector representatives, Maharashtra now has nearly one lakh coaching institutes, compared to around 15,000 centres a decade ago. Mumbai alone is estimated to have 30,000 coaching centres, reflecting rapid growth and intense competition.

Experts believe the coaching market is reaching saturation as experienced faculty members increasingly launch their own local institutes, making it difficult for large coaching chains to retain students solely through brand recognition.

They also point to the growing popularity of online learning platforms, which are estimated to account for 5-10 per cent of the coaching market, particularly among self-motivated students preparing for competitive examinations.

Parents Raise Questions Over Fee Collection

Parents have questioned why admissions and fee collections continued despite the company’s financial difficulties.

Several have demanded pro-rata refunds, transparent fee audits and government intervention to safeguard students’ interests. Education activists argue that coaching institutes should not collect advance fees if they are uncertain about continuing operations.

Consumer groups have also renewed calls for stronger regulation of the private coaching sector, including mandatory financial disclosures and protection of advance fees paid by parents.

Arihant Academy Offers Relief

Following the shutdown, Arihant Academy announced that it would accommodate eligible Mahesh Tutorials students across selected branches in the Mumbai Metropolitan Region.

The institute clarified that it has not acquired or merged with MT Educare, but would allow affected students to continue their education without charging additional tuition for fees already paid to Mahesh Tutorials. Students may only need to pay any remaining balance amount, depending on their course.

The academy has also announced counselling support to help students, particularly those preparing for Class 10, Class 12, JEE and NEET, cope with the sudden disruption.

Calls For Stronger Regulation

Education experts say the incident exposes a regulatory gap in India’s rapidly expanding coaching industry.

They have recommended measures such as:

• Mandatory escrow accounts for advance student fees.
• Early disclosure of financial distress by coaching institutes.
• State-level monitoring of large coaching chains.
• Clear refund policies when institutes discontinue operations.
• Protection of salaries for teaching and non-teaching staff.

Experts believe such safeguards would reduce uncertainty for students and parents while improving accountability within the private coaching sector.

Disclaimer: Students and parents affected by the closure should contact their respective coaching centres and management for official information regarding class transfers, fee adjustments and refund procedures. Authorities have not yet announced any statewide compensation or regulatory action related to the closures.