The Deputy General of Police said the reward would elicit information about the whereabouts of the two assailants.
On Sunday, the state police had identified the two assailants as Ashfaq Husain and Moinuddin Pathan, who had checked into a nearby hotel a day before committing the murder.
They had checked out of the hotel barely an hour after brutally murdering the former Hindu Mahasabha leader leaving behind their blood-soaked saffron kurtas and a blood-stained knife and other personal belongings in the hotel room.
After sending the recovered items for forensic examination, the police have sealed the hotel room.
The CCTV camera at the hotel reception has captured the two attackers moving out of the hotel in their saffron kurtas carrying the box of sweets in which the murder weapon had been hidden.
Incidentally, the recovery of the sweet box from the crime scene led the police to the Surat shop from where it was bought, and the subsequent arrest of three persons Maulana Mohsin Sheikh Saleem, Faizan and Rashid Ahmad Pathan alias Khursheed who are described as the conspirators of the crime.
The UP police are bringing the three accused to Lucknow on a 72-hour transit remand. They are expected to be presented before a court in Lucknow, later on Monday.
( With inputs from IANS )