Over the past decade the concept of 'employability' has dominated much of the discussion around the future of work and careers in this knowledge-driven economy. Widening access to higher education has been a focus of many different countries for a number of years now. India is no exception to it - Liberalization of Indian economy not only opened a door for business activities but also encouraged the growth of management education offering both graduate & post graduate program in the field of business management education. Lot of Indian management institutions follow US model of Business education particularly in the area of teaching methods, curriculum, and industry interface yet it is observed that, crisis is plaguing in the employability skills of students. This study is concerned with the tier-2 and tier 3 MBA Colleges to envisage why students intake is deteriorating. Secondly, are we loosing the sheen of MBA – which was once known to be a finishing school - from where one would step into professional life with almost job guaranteed. In the process of working on this paper through literature survey – we have ascertained that tier 2 & tier 3 MBA colleges are loosing their sheen because of many factors: the most important is the quality of education, lack of participation of the students in interactive learning process, lack of communication skills (soft skills), and the most important is the gap between the skill sets required by the Industry and the Academia especially MBA. All these factors cohesively impacted in deteriorating intake of students in tier-2 and tier 3 MBA Colleges.