Hyderabad, Telangana – Private colleges across Telangana have commenced an indefinite shutdown starting Monday, November 3, 2025. This widespread closure is a direct result of ongoing disputes between college management federations and the state government concerning substantial arrears in fee reimbursements, totaling an immediate outstanding amount of ₹900 crore. The shutdown impacts approximately 1,500 institutions and over 10 lakh students.
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Indefinite Shutdown Begins
The Federation of Associations of Telangana Higher Institutions (FATHI) announced the indefinite closure following the government’s failure to release promised fee reimbursement funds. This action escalates a previous strike in September, which was temporarily suspended based on unfulfilled government assurances. The affected colleges offer a wide range of courses, including engineering, pharmacy, management, nursing, law, B.Ed., M.Ed., degree, polytechnic, and vocational programs. An estimated 1.5 lakh teaching and non-teaching staff are also impacted.
Financial Discrepancy Triggers Crisis
FATHI Chairman N Ramesh Babu stated that the immediate cause for the shutdown is the government’s release of only ₹300 crore, significantly short of the ₹1,200 crore promised by Diwali (October 31, 2025). The total fee reimbursement arrears across private colleges in Telangana are estimated to be between ₹10,000 crore and ₹12,000 crore. These dues pertain to the Reimbursement of Tuition Fee (RTF) and Maintenance Fee (MTF) schemes, which support students from economically weaker sections, primarily Scheduled Castes, Scheduled Tribes, and Other Backward Classes communities.
FATHI now demands an immediate release of ₹5,000 crore, representing 50% of the total outstanding dues. The federation also requests a structured plan to clear the remaining ₹5,000 crore by March 31, 2026, and a clear payment schedule for the current academic year (2025-26) dues by June 30, 2026.
Government’s Vigilance Probe
On October 29, the government initiated vigilance investigations into all private educational institutions receiving fee reimbursement and post-matric scholarship funds. Chief Secretary K Ramakrishna Rao cited complaints of irregularities and fund misuse as the reason for these inspections. However, college managements view the timing of these probes as a retaliatory measure rather than a genuine accountability drive.
Student and Faculty Impact
The shutdown directly affects students, with some colleges withholding degree certificates due to unpaid fees. This prevents students from pursuing employment or higher education. Faculty members are also experiencing salary arrears and job insecurity. The Students Federation of India (SFI) has expressed support for the college shutdown, criticizing the government’s approach.
Escalation of Protests
FATHI has outlined a phased protest strategy:
- November 3: Indefinite college shutdown.
- November 4: College management delegations to meet with ministers, MLAs, and MPs.
- November 6: Large-scale protest in Hyderabad involving approximately 1 lakh staff.
- November 10-11: Public meeting and march in Hyderabad with 10 lakh affected students.
- Beyond November 11: Potential siege operations targeting political residences and sustained district-level protests.
Political Reactions
Union Minister of State for Home Affairs Bandi Sanjay Kumar (BJP) has criticized the government for “playing with the future of students” and accused it of “blackmail.” The Bharat Rashtra Samithi (BRS) has also questioned the government’s handling of the crisis, particularly in light of postponed semester exams. Student organizations like the Akhil Bharatiya Vidyarthi Parishad (ABVP) and the Progressive Democratic Students Union (PDSU) are also involved, highlighting the widespread concern.
Examinations Postponed
Universities, including JNTU-H, have been requested to postpone scheduled examinations due to the agitation. This creates cascading effects on academic calendars and future employment prospects for graduating students.
Telangana’s higher education system faces significant disruption as private colleges remain closed indefinitely. The lack of resolution regarding fee reimbursement arrears has led to a critical impasse between college managements and the state government, impacting a large student population and the financial stability of educational institutions.