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Mahesh Tutorials, once Mumbai’s most recognisable coaching brand, has shut several centres after its parent company, MT Educare, ran into severe financial distress and entered insolvency proceedings.

Founded in 1988 by Mahesh Shetty, Mahesh Tutorials grew from a small coaching class into one of Mumbai’s biggest coaching chains, later expanding into engineering and medical entrance coaching before launching an Initial Public Offering (IPO) in 2012.

Its financial troubles deepened after its acquisition by Zee Learn in 2018-19. The pandemic further hurt enrolments and revenues, leading to mounting debt, payment defaults and eventually insolvency proceedings before the National Company Law Tribunal (NCLT).

Not necessarily. Insolvency does not automatically mean a company has shut forever. It is a court-supervised process initiated when a company is unable to repay its creditors.

A Resolution Professional now assesses the company’s finances, verifies creditors’ claims and invites investors to submit revival plans.

If a resolution plan is approved, the company can continue under new ownership. If not, it may eventually be liquidated. However, with several Mahesh Tutorials centres already shut, uncertainty remains over whether normal operations can resume.

Mahesh Tutorials admitted students for the 2026-27 academic year before abruptly shutting several branches.

Parents allege they were called for “academic transfer” meetings where they were informed that another coaching institute, Arihant Academy, would accommodate students, but they were not given the option of a refund.

According to legal experts and coaching industry representatives, parents can approach consumer courts seeking a refund on the grounds that the promised service was not delivered. They can also file police complaints if they believe the institute accepted fees despite being unable to provide the promised coaching.

“When a company accepts fees but fails to provide the promised services, it can amount to criminal fraud. Parents, as consumers, can seek appropriate legal remedies by approaching consumer courts or filing a complaint with the police,” said Keshav Agarwal, Vice-President (Media and Legal), Coaching Federation of India.

“It is rightfully expected by parents that Mahesh tutorial should have officially informed them about the situation and allowed them to choose between refund or another option of coaching class,” said Prajesh Trotsky, President of the Mumbai Coaching Class Owners’ Association.

He further highlighted that in the absence of any regulatory framework governing the coaching industry, there is no regulation on whether students can be transferred to other coaching classes without consent.

“Parents are entitled for refund, ideally. And they can take admission to any other class that they want to join. But there is no defined rule regarding this,” he added, further insisting on the need for coaching class regulations.

Parents allege there has been no official communication from Mahesh Tutorials and that there is no guarantee all affected students will be accommodated by Arihant Academy.

Experts say there is currently no law governing whether coaching institutes can transfer enrolled students to another private institute without obtaining parents’ consent.

“Parents are entitled to a refund, ideally, and should have the freedom to choose another coaching institute. But there is no defined rule governing such transfers,” said Trotsky. Unlike schools and colleges, coaching institutes do not have a dedicated regulatory framework governing issues such as refunds, student transfers or institutional closure.

Industry representatives said similar concerns surfaced last year after coaching chain FIITJEE shut several centres. “This is why there is growing demand for a regulatory framework for coaching institutes, a proposal that has been pending with the Maharashtra government for several years,” Trotsky said.