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The Crown Prosecution Service has said the family of a convicted Manchester terrorist whose home they want to seize will have the chance to argue their case in court.
The police and CPS have applied for the forfeiture of Munir Farooqi's Longsight property saying it was used for terrorism.
It is thought to be the first time that such an order is being applied for under Section 23a of the Terrorism Act 2000.
The former Taliban fighter was given four life sentences in September for running a ``recruitment centre'' for home-grown extremists to go to Afghanistan to kill British troops.
He was at the centre of a plot to radicalise and persuade vulnerable young men to ``fight, kill and die'', Manchester Crown Court heard.
His family have handed in a 10,000-strong petition to the CPS offices in Manchester arguing it is unfair and they are being collectively punished.
The Farooqi family say five adults and two children including an eight-month-old baby will be made homeless.
However, it is understood it will be argued the family own two other properties, apart from Victoria Terrace in Longsight.
A CPS spokeswoman said: ``The power to forfeit residential premises in these circumstances is a new power under the Counter Terrorism Act 2008, and before any decision is made the forfeiture application is considered by the court and the family will be given an opportunity to be heard.
``The court will consider the effect of any order on the family members.
``In common with those convicted of serious crime, prior to the Counter Terrorism Act 2008, the CPS has applied for confiscation proceedings under the Proceeds of Crime Act 2002, against convicted terrorists.''
The case is expected to be heard next year.
Pakistani-born British citizen Farooqi was captured in a police sting when two undercover anti-terrorism police officers infiltrated his group wearing secret bugging devices.
He was told he must serve a minimum of nine years before he can be considered for parole after being convicted of preparing for acts of terrorism, three counts of soliciting to murder and one count of dissemination of terrorist publications, following a four-month trial.