The demand from the Islamic body revived divisions over 'The Satanic Verses,' his 1988 novel that Muslim groups have condemned as blasphemous.
The Rajasthan festival later this month is due to host leading writers and playwrights, including Annie Proulx, Ben Okri, David Hare and Richard Dawkins.
Fatwas from the Darul Uloom seminary in Deoband are observed throughout the world. Its vice chancellor said tens of millions of muslims remain 'hurt' [by] the novel.
The Statanic Verses provoked outrage throughout the Muslim world over the narrator's claim that disputed verses in the Koran had been revealed by the Archangel Gabriel.
Sir Salman was forced into hiding after Iran's Ayatollah Khomeini issued a fatwa for his execution. India was one of the many countries which banned the book.
"I call upon the Muslim organisations of the country to mount pressure on the centre to withdraw the visa and prevent him visiting India where [tens of millions] community members still feel hurt owing to the anti-Islamic remarks in his writings The Muslims cannot pardon him at any cost," said Maulana Abul Qasim Nomani, the institute head.
His remarks were supported by party leaders in Uttar Pradesh, India's largest state which is home to the seminary and is currently holding a state election campaign in which Muslim votes could decide the outcome. India's ruling Congress Party has targeted the state's Muslim voters with pledges of new quotas for government jobs and university places.
Rajesh Dixit, general secretary of the Samajwadi Party, the state's second largest party, said the author's visit must be prevented to avoid insult to India's Muslims...