The Foreign Investment Board in Solomon Islands says it is unaware of any scam surrounding the failed attempts to establish a university in Western Province.
Sixteen medical students from India enrolled at the so called King's University, but discovered on their arrival there was no medical course.
They returned home last week and have now filed a police complaint, saying they had lost their life savings.
The secretary of the Foreign Investment Board, Derick Aihari ,says proper procedures were followed, including seeking the consent of the Health Board, and the Education department.
"I'm not aware of any scam. There has been some allegations regarding this, but there is no proof. I haven't seen any proof on this. The application that came to us was done probably following our procedures."
The Health Minister, Benjamin Una, has rejected claims he received inducements to approve the university.
Meanwhile, Solomons Islands Assistant Police Commissioner, Johnson Siapu,
says they are verifying whether the Government documents on the university proposal are in order.
He says they are trying to contact the students overseas.