He was 70.
Azam was suffering from a heart ailment. Last week, he was admitted to Mumbai's Kokilaben Hospital where he died this morning due to multiple organ failure, family sources said.
His last rites will be performed tomorrow in Bhopal.
Azam was elected as a Lok Sabha member from Betul seat in 1980.
Last year he was expelled from the membership of All India Congress Committee (AICC) following his remarks against top leadership and indulging in anti-party activities.
Later, he filed a defamation suit against Congress leaders for expelling him from the party, allegedly without following rules and procedures.
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