It is shown in this research w3ork that the academic atmosphere of most of the Indian universities is too unstimulating and intellectually dull. Nepotism and corruption is rampant in most of the universities. Many policy makers of university education and some authorities of universities are witnessing the drama of corruption silently. Some of them are deeply entrenched in corruption. Majority of students have great frustration in such suffocating atmosphere of most of the Indian Universities. Most policy makers of higher Education and research have crass ignorance of the concept of university as it was understood in the ancient Indian tradition. The same may be revived with suitable alterations in the context of modern civilization They have blindly imitated the western model of university education minus the academic rigour, which is expected of both students and teachers. Hence, Indian Universities have become like teaching super- markets which have produced intellectual mediocres, careerists and degree holders. CONTENTS; 1.PREFACE 2. THE CONCEPT OF UNIVERSITY3.THE INDIAN SOCIO-CULTURAL SYSTEM 4.THE INDIAN UNIVERSITIES IN TRANSITION 5. STUDENTS UNDER STRESS AND RELATED PROBLEMS 6. METHODOLOGY AND DESIGN 7. ANALYSIS AND INTERPRETATION 8. DISCUSSION 9. RECOMMENDATIONS FOR IMPROVEMENT OF MENTAL HEALTH IN INDIAN UNIVERSITY STUDENTS 10. THEORIZATION