Mumbai: The abrupt shutdown of MT Educare centres, popularly known as Mahesh Tutorials, which was acquired by Zee Learn in 2018, was not a case in isolation. Last year, several centres of FIIT-JEE across the country wound up their operations allegedly due to the financial crisis.Coaching industry experts claimed that the sector has reached some saturation point, with the mushrooming of local players making it increasingly difficult to sustain large coaching chains. Institutes are managed on the reputation and teaching quality of their faculty – once popular teachers leave, retaining students becomes challenging, they added.Teachers and parents, however, claimed that such institutions should not enrol students when they want to shut shop. Stakeholders called for a stringent regulatory framework to protect the interest of students and teachers, to avoid such cases in future.While officials from MT Educare remained unavailable for comment a day after parents sought govt’s intervention, industry representatives claimed that the company had been witnessing a decline over the past few years, with several centres shutting down over a period of time.Speaking to TOI, Mahesh Shetty, the founder of Mahesh Tutorials, said that he had stepped down from his position at MT Educare, in 2019, a year after Zee Learn acquired it. “My resignation was accepted in April 2020, and since then I am not associated with the company,” he added.Shetty had started Mahesh Tutorials in 1988 with a few centres and expanded it to about 250 in a period of three decades. It ventured into junior colleges in its later years, was the first to launch an edTech and learning app in 2015, and also successfully launched its IPO in 2012. The company was in need of investment, when Zee Learn acquired it in 2018. A year later, he stepped down.Maharashtra Class Owners’ Association president Prajesh Trotsky recalled that one centre in Malad had shut down about two years ago, while another in Palghar stopped operations around 10 days ago. “Mahesh Shetty Sir was an educator, and once he was no longer associated with Mahesh Tutorials, the brand gradually lost its value,” he said.According to Trotksy, the biggest mistake was accepting advance fees. “Parents should have been informed in advance if there were operational issues,” he said.He said though the coaching sector itself remains robust, growth has stagnated. “The sector is not in trouble. There is some saturation because the number of coaching institutes has increased significantly. Many teachers from established institutes have started their own classes,” he said, adding that managing multiple branches involves substantial overheads. He also pointed to the rise of online learning, which he estimated has captured 5%-10% of the market, particularly among self-motivated students.Arihant Academy, another institute, has accommodated over 1,000 students from MT Educare and a parent told TOI that classes already commenced on Wednesday. “Around 90-95% of the affected students who approached us have already resumed their classes. We are not seeking fees from students who have already paid full fees, for the rest, we are asking for the balance amount,” said director Anil Kapasi, Arihant Academy.The academy is also planning counselling sessions for students, particularly those in Classes 10 and 12 as well as JEE and NEET aspirants, to help them cope with the sudden disruption.“The abrupt suspension of MT Educare centres across Maharashtra has left over 2,500 students in severe anxiety mid-session, reflecting a systemic fragility previously witnessed in the FIITJEE crisis. While the immediate, fee-free accommodation of affected students by Arihant Academy is highly commendable, temporary peer transfers cannot substitute for institutional stability,” said Keshawkumar Jha, senior educator, co-ordinator (Konkan division), Regional Teachers’ Organisation.“Moving forward, state authorities must stringently monitor these academic transitions to protect student welfare and prevent further cognitive disruption. Ultimately, the state must enforce a transparent regulatory framework—including mandatory escrow accounts—to secure advance fees, protect faculty livelihoods, and prevent commercial mismanagement from derailing our youth,” Jha added.The rise and fall of Mahesh Tutorials (a Zee Learn enterprise since 2018-19):* Mahesh Tutorials was founded by Mahesh Shetty in 1988 for higher secondary students* It underwent restructuring in late 2000s as MT Educare* It secured private equity funding in and launched a successful IPO in 2012* Lakshya was an IIT enterprise, which was acquired by MT Educare, and junior colleges were set up in collaboration in other states, including Karnataka and Telangana* In 2018, Zee Learn acquired majority stakes in the company. At that time, the company had around 250 centres across the country* In 2019, Shetty stepped down from the company. His resignation was accepted in April 2020* In 2022, the National Company Law Tribunal (NCLT) admitted MT Educare into insolvency proceedings* While the total numbers of existing centres is unclear, according to the website they have over 90 centres. Parents, however, claimed that there are about 33 centres* Early this week, parents in the remaining centres were called and informed about the shutdownTotal coaching centres in Mumbai: 30,000Total coaching centres in Maharashtra: Around a lakhTotal centres about a decade ago: 15,000
