An undercover investigation by the newspaper revealed Hamid Ali, the spiritual leader of the al-Madina mosque in Beeston, has recently called the July 7 attacks that killed 56 people a "good" thing.
After the attacks Ali said the perpetrators should be punished.
Three of the July 7 suicide bombers worshipped at Ali's mosque and jailed leader Abdullah al-Faisal had lectured there. Al-Faisal is serving seven years for inciting murder and racial hatred in 2003.
Since the 1990s he toured mosques with a message that non-Muslims were "cockroaches" to be killed. Audio and video of his speeches are hot commodities in the underground extremist Muslim world, the newspaper said.
A Times reporter, posing undercover as a student, was offered some of the tapes.
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