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The family home of convicted terrorist Munir Farooqi will not be seized by the authorities.
Giving the reasons, Mr Justice Henriques said it would a "draconian, severe and unjust" consequence for his wife and children.
"I am wholly satisfied Munir Farooqi kept his invitations and solicitations well away from other members of the family."
Farooqi was jailed for life in 2011 after attempting to radicalise two undercover police officers into killing British soldiers in Afghanistan.
He'd set up a dawah religious stall on Longsight Market close to his home on Victoria Terrace where much of the activity took place.
Had the forfeiture application succeeded it would have been the first time a property had been seized under the Terrorism Act.
Mr Justice Henriques has ruled Munir Farooqi must pay defence and prosecution costs totalling £500,000.
The family of a man convicted of terror offences is fighting a threat to seize their home.
Munir Farooqi from Longsight in Manchester was jailed for life after trying to recruit men to fight British soldiers in Afghanistan.
The property would be the first to be forfeited under the Terrorism Act.
A hearing is underway which the family of a convicted terrorist claim could lead to them losing their home.
It's the first time the authorities have attempted to use legislation under the Terrorism Act to seize property.
The family of Munir Farooqi also face proceedings to recover legal costs of over £600,000.
The 57 year old was jailed for life in 2011 after trying to recruit two undercover police officers to fight Jihad against western troops in Afghanistan.
At his trial it was heard he'd been running a dawah, or religious stall, on Longsight Market and later tried to radicalise the men in the basement of his nearby home.
The family of a man convicted of attempting to recruit men to fight British soldiers in Afghanistan will go to court in a bid to save their home in Manchester. Munir Farooqi received four life sentences in September 2011 for inciting jihad.
But now his 4 bedroomed property in Longsight is set to become the first to be seized in the UK under terrorism laws. The Terrorism Act 2000 entitles the courts to take property owned or under the control of terrorists at the time of an offence.
The family and their supporters claim three generations will be left homeless if the house, which is not registered in Munir Farooqi's name, is seized.