Goa Chief Minister Manohar Parrikar said on Wednesday that 'Nude' does not have a censor board certificate.
Parrikar is the chairman of Entertainment Society of Goa, the nodal agency which hosts IFFI.
"What information I have got is that the film 'Nude' is not a complete movie. It is without a censorship certificate, so we cannot show it," Parrikar told reporters.
"The decision to drop 'S Durga' from the festival was taken to avoid the sentiments of any community from getting hurt," the chief minister said.
"The film was part of two festivals, including MAMI in Mumbai and Kerala Film Festival, but it was shown after adequate cuts. It was submitted to IFFI without any cuts," he said.
According to IFFI rules, a film cannot be shown with cuts, Parrikar added.