Settlement for Nifty ETF

Do Niftybees also follow T+2 settlement cycle.?
Incase of the above scenario. Is there any chance of getting short delivery penalty for NIFTYBEES on BTST Basis.?

yeah… etf have t+2 settlement cycle as well… there is always risk of short delivery while doing btst… one of the inherent risk of btst trading…

Since NIFTY ETF is not a share ( scrip ) or a company, is it that fair enough to have a t+2 settlement cycle ?

In that case it is not fair to have for individual shares also, etf is made of individual shares only. Anyhow that is the rule irrespective of fairness.