But that left tens of thousands of individuals with whom the UKBA had lost contact.
By accepting the censure, UKBA has formally acknowledged there were health and safety failings.
The UK Border Agency (UKBA) rejected the application on Tuesday due to insufficient proof of identity.
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Malcolm Gillies, the university's vice chancellor, last week accused the UKBA of "rewriting its own guidelines".
Those results were enough to convince the UKBA that the university had to lose its status.
The UKBA is due to lose 5, 000 posts by 2015 as part of government cost-saving measures.
"There's currently students serving prison sentences for trying to defraud the UKBA, " he said.
The UKBA said it met local authorities before the raid so they could arrange alternative care.
The UKBA said it took its responsibilities under the Statistics Authority's code of practice seriously.
"My view is that the organisation (UKBA) has slowly but surely got better, " she said.
Immigration lawyer Harjap Bhangal said those caught attempting to deceive the UKBA were likely to face prosecution.
The UKBA said steps would now be taken to deport all the people who had been detained.
Organisations that house asylum seekers for the UKBA must inform local authorities if someone is granted refugee status.
The UK Border Agency (UKBA) is being scrapped and its work is being returned to the Home Office.
When inspectors visited a UKBA office in Sheffield they found a further backlog of 2, 100 "complex" temporary migration cases.
In 2006, the then home secretary ordered the UKBA to deal with 450, 000 unresolved asylum cases within five years.
Her home care provider, Carefirst24 in Sutton, south London, closed after a raid by the UK Border Agency (UKBA).
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In 2012 there were 300 UKBA enforcement operations and arrests and 230 prosecutions.
Two reports into the UK Border Agency (UKBA) have found failings in the way intelligence about illegal immigrants is used.
The aircraft pilot warned UKBA staff the crates of ammunition were explosive and should not be examined, the HSE said.
The UKBA sampled up to 250 files at London Met to see how rigorously it was monitoring its foreign students.
The UKBA website informs applicants that "you do not need to contact us to check the progress of your application".
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Mr Sedgwick said the report had presented "stark findings" that would be taken seriously and the UKBA "needed to improve".
Lib Dem MP Julian Huppert said the report was "humiliating" and suggested the UKBA had "lost control" of its own procedures.
"We have known for some time that UKBA is a troubled organisation with a poor record of delivery, " said the spokesman.
The men, who were living under the M4 bridge in Hounslow, were held after a raid by the UK Border Agency (UKBA).
The university could still mount a legal challenge to the UKBA's ruling.
The point the UKBA is making is that London Met's procedures were not good enough to know one way or the other.
Crime scene prints have been run against UKBA databases as well as the national police database in order to solve more crimes.
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