IMC has one MLA Shahjil Islam (Bhojipura constituency in Bareilly) and is supporting the SP government, which is already in majority with 224 seats in the 406-member Assembly.
"SP has lost faith of Muslims and its supremo Mulayam Singh Yadav has hurt humanity by terming riot victims living in camps as conspirators," IMC president Taukir Raza Khan, who enjoys status of state minister, told reporters.
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Khan, who is advisor in the Handloom industry department, criticised Yadav for saying that those living in relief camps were Congress and BJP workers. "By terming them (riot victims) as agents of Congress and BJP, SP has showed its dirty mindset," Khan said.
He said he had given conditional resignation on December 5 to press for redressal of problems of Muzaffarnagar riot victims and other problems of the community but he had not got any reply in this regard from the government.
"I will give one week's time to the government to redress the problems...SP is not taking right decisions and its statements are also not correct," he said.
Khan, considered a big leader among Barelvi Muslims, said IMC would hold its executive meet on January 5 in which it would decide whether to continue support to SP or not.
On December 23, Mulayam had said, "there are no riot victims at all in the relief camps. There is not even one. You can check. These are people who are conspirators. BJP and Congress have conspired. They have asked people to stay there at night and sit in dharnas. This is conspiracy of the people there.
"They (riot victims) have all gone. Congress and BJP are provoking them to rake up the issue till elections," he had said.
Muslims clerics had also criticised Yadav's comments.