Mayawati had denied BSP ticket to Khan, who was the Minister of State for Minority Welfare. He was sacked from the government on Dec 30, 2011 for neglecting duties.
During Mulayam Singh's tenure, he had introduced the MLA fund, but the guidelines were framed by BJP government. In the beginning, Rs 25 lakh was allocated to an MLA which was later increased to Rs 1.25 crore.
It has been found that Khan had allegedly diverted over Rs 1.62 crore for the construction of three educational institutions from 2007-2008.
On the other hand, the assembly had adopted a resolution barring Lokayukta from taking any strong action against MLAs for allegedly misusing the funds, thus restricting them of strict action against Khan.
While this resolution was moved by Congress leader Pramod Tewari, Lokayukta had left the decision to Uttar Pradesh Chief Minister Mayawati, but she didn't take any action against him and sacked him only last year.