The Sectoral Oversight Committee on Education has recommended the government to take over the institution referred to as the Sharia University in Batticaloa.
The institution was under investigation by multiple bodies over a number of charges.
COPE in Parliament also conducted an investigation into the construction of the institution and it avenues of income.
COPE members also visited the university premises and inspected the construction.
Meanwhile, the Presidential Commission on corruption is also conducting an investigation into the same institution.