The Irish Naturalisation and Immigration Service (INIS)is to contact gardaí over the failure of an English language school to return student fees to applicants from mainly developing countries whose courses were never provided.

In a statement the service said it was informed Monday that Shelbourne College, which closed last November was seeking to enter voluntary liquidation.

“The college will now be immediately removed from the Internationalisation Register, which means that no immigration permission will be issued in respect of it,” said the agency, which is under the remit of the Department of Justice.

“INIS is aware of allegations that the college has failed to refund monies due to certain students whose visa applications were refused. While INIS cannot comment on specific allegations regarding refund of fees it is understood that some funds remain outstanding and the affected students should continue to pursue this issue with the college.”

On Monday, a number of students from Shelbourne College gathered outside its deserted premises on Camden Street seeking an explanation for the missing funds.

The Irish Council for International Students said 60 students in Ireland were owned €4,000-€5,000 each, while dozens more from Nepal, India, Pakistan, Vietnam and The Philippines who were never able to come to Ireland were said to be owed similar amounts.

INIS said: “It should be noted that if a private business is allegedly involved in defrauding a person with whom it has dealings this is a matter for the application of criminal law and should be reported to An Garda Síochána for appropriate criminal and/or fraud investigation.

“A college taking money from students pending a visa application is fully aware that they have no entitlement to those funds until the student is confirmed as being allowed to come to Ireland as a student.

“This is standard practice across EU jurisdictions which are involved in international student business. Should the student’s visa application be refused then the fees must be returned (less a reasonable small handling charge). Almost all colleges honour their commitments in this respect.”

INIS said it had previously put Shelbourne College on notice requiring that confirmation be provided that students entitled to a refund had received one under the immigration rules and in accordance with the college’s refund policy. The agency said it had pursued this matter with the management of the college would be in further contact with the Garda.

The agency is making arrangements for students currently in Ireland to complete their courses in other institutions.

It added that the “regrettable situation with Shelbourne College further emphasises the necessity of the reforms” announced announced last September in the wake of a series of language school closures. Tighter regulation has been promised after a number of schools were exposed as little more than “visa factories”.