Forty-six Indian students from defunct private tertiary institution IANZ have failed English tests and most will not be allowed to continue their studies, the New Zealand Qualifications Authority (NZQA) says.
The students' poor English was exposed when NZQA tested 329 students to check how many of their credits toward a Level 6 business diploma they deserved.
The authority said 70 of the students were told they must sit English tests before they could be transferred to another tertiary institution, EDENZ, which had purchased IANZ.
It said 50 students sat the assessment and four did well enough to be allowed to continue their studies, while 16 others would be allowed to resume their level 6 course only if they completed a 14-week remedial English course.
However, 30 students did so badly they would not get that option.
"For this group, NZQA and Immigration New Zealand are currently working with the students to help them determine their next steps," the authority said in a statement.
The authority said 20 students did not go to the English test and it had referred their details to Immigration New Zealand.
It said IANZ had provided $100,000 toward the cost of the tests and the students did not have to pay for those, or for the cost of the remedial English course.
Documents show the authority reviewed IANZ earlier this year and found it was passing students it should have failed and had given the authority false information.
The authority found evidence of dishonesty as well as poor governance and management, and said the institution had failed to comply with the requirements for maintaining its registration.