I am strongly agree with your statement as "MBA is fading due to over exploitation by Distance education in India". But except some few corporate employees shine with MBA through Distance Education mode please.
I believe,the distance mode is for those having enough of prior experience in the corporate sector,but not for fresh graduates.The degree course involves substantial amount of syllabus & field work,which cannot be easily be digested by science graduates,except say engineering ones.Among the graduates,commerce ones have a better advantage over the science graduates.Constant interaction with the faculty is quite essential,which is one of the drawbacks of the distant mode.
I don't believe that the MBA is fading. It would appear that the MBA is quickly becoming the required entry level degree for corporate institutions. Although distance learning is having an impact it not clear that anyone is truly concerned about the overall exploitation of online processes by India.