Jain, who is behind bars in connection with a money laundering case, was accused of extorting Rs 10 crore from an inmate, Sukesh Chandrashekhar, for providing him protection in the jail, they said.
The family of Afzal Guru, who was hanged two weeks ago at Tihar jail, has not yet approached the prison authorities to pray at his grave though the government has made the offer for his close relatives.
His name was cleared by a three-member selection panel headed by Prime Minister Narendra Modi and comprising Chief Justice of India Jagdish Singh Khehar and Congress leader in Lok Sabha Mallikarjun Kharge as members.
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