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The apex court had on February 17 directed the UP Police to lodge an FIR against Samajwadi Party (SP) leader Prajapati.
PM said the state government was not properly utilising the fund given by the centre for poor people.
The penalty will be imposed from the first April.
Prime Minister Narendra Modi, SP chief Akhilesh Yadav, Rahul Gandhi and BSP chief Mayawati will descend on Varanasi.
President said: It is tragic to see them caught in the vortex of violence and disquiet.
According to Ilmi the university had pressurised the organsiers to change the subject.
Rahul said: Even Manipur Chief Minister Okram Ibobi Singh and the state government are not aware of it.
Uttar Pradesh has seen record seizures of Rs 115.70 crore cash, 20.29 lakh barrels of liquor worth Rs 57.69 crore.
After the crash the driver escaped on foot armed with a knife on a busy city centre street.