Reddy was back again in the field of politics. He became the president of Chittoor District Board. In 1936, at a Senate meeting of Andhra University, it was decided to invite Reddy to return again to Andhra University as its Vice-Chancellor. He returned to Waltaire later that year for the second time as Vice-Chancellor and retained the position till 1949. During this period, the Andhra University became internationally known. Dr S Bhagavantam, Dr T R Seshadri, Dr V K R V Rao and Dr V S Krishna, K. R. Srinivasa Iyengar and many other great professors made a beeline to Waltaire, inspired by the idealism and unique moral leadership of Reddy. Reddy was knighted by the British government in the 1942 New Year Honours. In 1949, Reddy became the Pro-chancellor of Mysore University. He died in Madras on 24 February 1951. Iyengar, in his book "Essays and Addresses", describes Reddy as a great educationist, a first-class teacher, humanist, a bold thinker and a reformer. Reddy's lectures on 'University reforms' delivered in Madras under the presidency of Dr S. Subramania Iyer, S. Srinivasa Iyengar and T. V. Seshagiri Iyer had set the tone for university reforms in India. Following Reddy's death, the Maharaja of Mysore Jayachamarajendra Wadiyar recalled, "[Reddy] served Mysore in various capacities every one of which was characterised by conspicuous ability, uncommon zeal and indefatigable energy."