The state government also said that it would ensure "justice" in the case of Mujahid, who was an accused in serial blasts that had rocked Lucknow and Faizabad courts in November 2007.
"A financial assistance of Rs 6 lakh has been sanctioned for the family of Mujahid. The government will ensure that justice is meted out," a government spokesman said here.
He said that though on demands of family members of Mujahid, a CBI probe has been ordered, the state government too is conducting an inquiry into the matter.
The spokesman said that the post mortem of Mujahid was conducted by a panel of five doctors, including two from the Muslim community, and all the necessary steps have been initiated on the matter.
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The spokesman also said that the state government has also appealed against the Barabanki district court verdict, which had dismissed its request to withdraw cases against alleged terrorists Tariq Qasmi and Khalid Mujahid.
He was being brought back to Lucknow jail after hearing in a Faizabad court.
The accused fell sick and fainted near Barabanki border and was rushed to district hospital where doctors declared him dead.