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Misused and unused are different in my books.
Even then, I have heard that the NRI-quota/NRI-sponsored quota in places like NUJS were rampantly misused over the years.
NRIs have Indian passports. Foreign nationals have foreign passports.
NLS does not have an NRI Quota/Management Seats.
Foreign seat is not a jugaad quota.
There are some issues with the place, this isn't one of them.