A recovery notice was issued to Maulana Tauqeer Raza for defaulting on a ₹5,055 loan taken before 1997, which has now risen to ₹28,346.
Officials said Raza had sold his Budaun properties and moved, prompting steps to seize any remaining assets for repayment.
Raza is currently in Fatehgarh Jail for his alleged role in the September 26 Bareilly violence, in which 88 people have been arrested so far.
A recovery notice has been pasted at the residence of Maulana Tauqeer Raza, who is currently lodged at the Fatehgarh Central Jail in connection with the September 26 violence in Bareilly, for defaulting on a loan he took from a cooperative society about three decades back, officials said on Saturday.
The loan of Rs 5,055, which Raza took before 1997 from the Sadhan Sahkari Samiti at Rasulpur Puthi village in Budaun district, has now swelled to Rs 28,346.
Haribabu Bharti, general manager of the District Cooperative Bank in Budaun, said a recovery notice has been pasted at Raza's residence in Bareilly.
“It has been learnt that Raza sold all his properties in Budaun a few years ago. Under such circumstances, any property belonging to him, wherever known, will be seized to recover the government loan,” Bharti said.
The official said he has prepared a report on the entire matter and sent it to senior officials.
Sadhan Sahkari Samiti secretary Hridayesh Kumar Singh on Saturday said when he was reviewing a list of loan defaulters, he came across the name Tauqeer Raza.
Upon investigation, he found that the defaulter was the same Tauqeer Raza, whose name cropped up in connection with the Bareilly violence.
Singh said Raza took the loan to purchase fertiliser, but despite numerous notices, he did not repay the amount, which has now grown to Rs 28,346.
Raza and his family have sold their land and moved away from the district since then.
Singh said senior officials have been informed about the matter, and the loan amount will be recovered soon.
Budaun District Magistrate Avanish Rai said he came to know on Saturday that Raza owed more than Rs 28,000 to the Sadhan Sahkari Samiti.
The assistant registrar of cooperatives, Munnalal Mishra, informed him that a notice will be served to Raza soon to recover the loan amount, Rai said.
Tension gripped Bareilly on September 26 when protesters opposing FIRs against 'I Love Muhammad' posters clashed with police after Friday prayers, claiming they were not permitted to hold a demonstration in support of the campaign.
Several people were injured in the violence. Two more persons were arrested for the violence on Wednesday, taking the total number of arrests to 88, including Raza.
So far, 10 FIRs have been registered in the case against 125 named individuals and more than 3,000 unidentified persons.
