Sorry for the late response. I repeated the installation with the suggested changes

1. On running 3.b in the INSTALL file I end up with this :
/usr/bin/install: cannot stat `/home/biswas/Desktop/FaceRecognition/librariesForRTFTR/vigra1.6.0/doc/vigra/form*.png': No such file or directory

2. liboctave.so is present :

# ls /usr/lib/octave-3.0.3/lib*
/usr/lib/octave-3.0.3/libcruft.so     /usr/lib/octave-3.0.3/liboctave.so.3.0.3
/usr/lib/octave-3.0.3/libcruft.so.3.0.3  /usr/lib/octave-3.0.3/liboctinterp.so
/usr/lib/octave-3.0.3/liboctave.so     /usr/lib/octave-3.0.3/liboctinterp.so.3.0.3

3. I replaced "rtftr/configure" with the one you suggested

4.Now it's a new error when running ./rtftr

./rtftr: symbol lookup error: /usr/lib/libavcodec.so.52: undefined symbol: av_gcd