NDR to a distribution list or to a public folder is not supported


Believe you or not, but you cannot configure Microsoft Exchange Server of any version to send non-delivery reports (NDRs) to a distribution list or to a public folder. This configuration is not supported.

By default, when an e-mail message is undeliverable, an NDR is returned only to the sender of the e-mail message.  However, if the return address is an email address of a public folder (i.e. message has been sent as a public folder) or a distribution list, they will never receive the NDR. You can just configure Exchange server to send a copy of NDRs to an SMTP e-mail address, either within your Exchange organization or on the foreign system

Check out these two Microsoft articles to learn more about the issue and find a workaround

 

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