Can we transfer from IIT to NIT in the 2nd year?

Hello, my name is Junaid Khan. I've completed a B.Tech in Chemical Engineering from NIT Trichy. As per my knowledge, it is not possible to transfer from an IIT to an NIT in the 2nd year. One of my friends has just completed his 1st year at IIT Madras. Due to personal issues, he wanted to transfer from his IIT to an NIT in the 2nd year, but he could not. 

Both NIT and IIT have limited seats and a strict admission process for their courses. Also, any NIT college in India does not offer Lateral entry. It doesn't matter whether you have completed a 3-year Diploma course, but admission into NIT from 2nd year is not possible anyway. 

However, in IIT one can opt for BTech directly from 2nd year through lateral entry. Candidates who wish to transfer from IIT to NIT, have no other option but to waste one year. Students then need to sit for the JEE Main exam again and register themselves for NIT admissions.