Shocking video ... University students watch on as a frat member performs a sexual act on a woman. Picture: LiveLeak

A UNIVERSITY has suspended dozens of students after vulgar vision of an alleged initiation ritual emerged.

Indiana University, in the US, suspended Alpha Tau Omega fraternity after allegations of so-called “hazing” involving sexual misconduct came to light.

The video, which surfaced on social media, appears to show a male student performing a sex act on a woman while a group of naked, or near naked young men watch on.

The Mirror reports the 30-second clip was originally uploaded to Reddit where users claimed the woman had been hired as a stripper by the fraternity group.

“The National Office of the Alpha Tau Omega fraternity has revoked the charter and closed the Delta Alpha chapter at Indiana University following the release of a highly inappropriate and vulgar video,” ATO National CEO Wynn Smiley said in a statement.

Shocking ... A still from the video that rocked the large campus. Picture: LiveLeakSource:Supplied

Suspended ... The Alpha Tau Omega house at Indiana University in the US.Source:Supplied

“The video from a smartphone shows a sex act that occurred last week. The event was unauthorised involving about half of the chapter’s membership.

“The National Fraternity investigation revealed the 21-year-old man in the video was an initiated member, not a pledge, and the two women in the video were exotic dancers hired by one of the members.

“Our investigation revealed that no pledge was compelled to participate. Regardless, the actions are contrary to the ideals and principles of Alpha Tau Omega and are highly offensive.”

This is not the first time the fraternity has come under close scrutiny.

In 2010, members were suspended amid claims of hazing and drinking violations after it had become known as “party central.”