Salman Rushdie's novel "Satanic Verses," banned as blasphemous in India and some Arab countries, has won the Whitbread literary prize.

A panel including novelist Fay Weldon, literary editor Nicholas Shakespeare of the London Daily Telegraph and others chose the novel from a list of 80 for the prize, which carries an award of $2,650.The novel is named for verses the prophet Mohammed removed from the Koran, the holy book of Islam, on grounds they were inspired by Satan.