It cost the state $1 million to build the Mr Qasab’s special cell in Mumbai’s Arthur Road jail.
Another £2 million was spent on security between Marach 2009 and September 2010.
165 people were killed in the Mumbai attack, excluding the nine gunman who lost their lives.
Qasab, the only surviving gunman, was found guilty of waging war against India, murder and conspiracy.
“Besides the money that was spent on constructing the special cell at the Arthur Road prison, 26,953 rupees ($517) were spent on taking care of his medical needs,” Medha Gadgil, home secretary of the western state of Maharashtra, told Press Trust of India.
However Ms Gadgil insisted that the reports concerning Qasab’s meals were false.
Media reports claimed that the gunman, who is also known as the “butcher of India, was being fed luxurious foods such as biriyani and that 25 cents was being spent on his meals.