MBA Admission Scams: MBA entrance exams are the toughest and highly competitive tests in the country. A huge number of aspirants aim to build their careers in management. So, they participate in these national-level entrance tests like CAT, SNAP, XAT, NMAT, etc. They spend hours preparing for this exam just to secure MBA seats in top Business schools. However, the painful reality often gets hidden under the attractive brochures and marketing campaigns of many MBA colleges in India. Many top business schools use a manipulative approach to draw lakhs of students, extract huge amounts of money and keep their promises unfulfilled. The scams include factors like increased registration fees, hidden costs, false placement promises and an expensive post-selection process. Check here how MBA Admission Scams function and how students can protect themselves from this trap.
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MBA Admission Scams: The Hidden Truth Behind MBA Admissions
CAT and other national-level entrance tests open doors for management admission to top IIMs and business schools in India. Many private MBA colleges in India have their own set of admission processes, which are completely different and unfair. Even after clearing the entrance test and fulfilling the eligibility criteria, students often have to pay for the unexpected expenses. Some charges may be justified, but many are unnecessary and designed to make students spend more. Check below the reality behind MBA Admission Scams:
MBA Entrance Exam Application Fees
Over 3 lakhs of aspirants attempt this MBA entrance test every year. They are required to pay application fees to register successfully for this entrance test. It is reported that the CAT application fees for 2025 have been increased for all categories. Now, candidates from SC, ST, and PwD categories will have to pay Rs 1300, whereas other categories of candidates, like UR/OBC, will have to pay Rs 2600. The application fees for other exams like XAT, NMAT, SNAP, MAT, and CMAT range between Rs 1500 to Rs 3000.
B-School Registration Fees
The MBA entrance test registration fees/charges might be fair, but B-school registration fees are expensive and unnecessary. After clearing the CAT cutoff percentile, students will have to register for that particular institute to move ahead in the MBA admission process. Many MBA colleges charge between Rs 1,500 and Rs 5,000 just for registration. This amount is typically non-refundable, even if the student fails to join or is rejected.
Shortlisting & Selection Criteria
There are fewer chances of your selection in many private B-schools, even after paying for so many unnecessary expenses. Out of lakhs of students who pay registration fees, only a few of them are placed in the final merit list. These colleges easily label their trap as “administrative expenses.”
Travelling & Accommodation Expenses
Candidates who clear the CAT cutoff percentile and register successfully for a specific institute are shortlisted for Group Discussions (GD), Personal Interviews (PI), and Written Ability Tests (WAT) rounds. These selection rounds are held in top-tier cities. Students from small towns spend a huge amount on travel, accommodation, and food to be part of these selection stages. Hundred of MBA aspirants receives these shortlisting call letters. The truth is that many times their selection chances are very less, and this tactic is used just to collect application processing fees.
Hidden Charges After Joining
Even after securing MBA seats, these traps and manipulations do not stop. Many hidden charges are covered in the course fees. Some of them are listed below.
- Compulsory laptop fees
- Blazer/uniform fees
- Training costs
- Mandatory hostel & mess charges, etc.
MBA Admission Scams: How the Marketing Trap Works
Students often become victims of MBA Admission Scams due to misleading and glossing marketing tactics. Here is the list of a few Marketing Traps for MBA admissions discussed below:
| Fake Placement Records | Brochures of many private MBA colleges claim “100% placement”. They hide the truth that several jobs are internships or low-paying sales jobs. They manipulate the highest package and average salary figures to attract a huge number of candidates for admission. |
| Misleading Rankings | Many private MBA colleges purchase tags of “Best B-Schools” lists released by magazines or websites. These rankings create a false sense of reputation and give unrealistic hopes to the students. |
| Alumni Endorsements | Paid social media influencers and a few “success stories” are a popular technique to manipulate students. The actual reality remains hidden which includes extremely low package, poor teaching quality, and outdated course structure. |
MBA Admission Scams: The Real Victims
Here are a few experiences of the real victims of MBA Admission Scams shared below:
- Case 1: A student from Delhi paid Rs 3 lakh as booking charges for the MBA college in Mumbai. Later, he got admission to a better institute. So, he decided to withdraw from the first college but was denied a refund. He did not receive a full or partial refund, even though classes had not started then.
- Case 2: A female candidate from Patna travelled twice to Lucknow to attend selection rounds. She spent around Rs 25,000 on travel and accommodation. She was rejected and later found out that nearly 400 other students had gone through the same process. In reality, they were competing for just 60 seats.
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How to Protect Yourself from MBA Admission Scams?
Here are a few tips and tricks to protect yourself from MBA admission scams shared below:
- Compare, research, and then pick the MBA college for admissions. You can also review the official rankings of the institute from NIRF. Cross-verify the placement data from reliable sources.
- You should never pay a hefty amount before final selection. You should always check the refund policy before spending a huge amount.
- You must confirm that the specific college is approved and affiliated with a recognised university.
- Interact with the current batches of the particular college to learn about the real scenario.
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MBA Admission Scams FAQs
The MBA admission scams include factors like increased registration fees, hidden costs, false placement promises and an expensive post-selection process.
You should research carefully about the college, avoid paying a huge amount before selection and verify the placement records with reliable sources to protect yourself from MBA admission scams.
