He said: "The image around the world is one that is really quite appalling because it suggests that overseas students may well be deported from this country because of a decision made by UKBA for which there is no detail given as to the basis of that decision."
The Islington North MP said the move jeopardised London Met's future and urged ministers to allow current students to finish their courses. He added: "Every university in this country has cause to be concerned by this decision from UKBA."
But, answering an urgent Commons question as MPs returned from the summer recess, Tory immigration minister Damian Green said: "UKBA found systemic failures which meant that London Met had not been able to ensure the appropriate admission and tracking of students from abroad."
Mr Green said allowing London Met to continue awarding visas would have undermined the regime. "Institutions must comply with the rules, whether they sponsor 10, 100 or 1,000 international students. This includes having a system to check that students have the right visas to study in the UK and monitoring the attendance of students," he told MPs.
He said officials would start writing to affected students on October 1, giving them 60 days to leave Britain or find another university to complete their studies.