Marion 'Suge' Knight claims a group of Tupac Shakur's closest friends and family smoked his cremated ashes in a blunt.

Speaking exclusively to PEOPLE from California's Richard J. Donovan Correctional Facility, where he is serving a 28-year sentence for a 2015 fatal hit-and-run, the former Death Row Records CEO recounted the events surrounding Tupac's death and the unusual tribute that followed.

Tupac Amaru Shakur, aged 25, was fatally shot on 7 September 1996 in Las Vegas after attending a Mike Tyson fight with Knight.

The pair were ambushed at a red light after leaving the MGM Grand, when gunfire tore through their black BMW.

Knight was grazed in the head, but Tupac was shot four times.

He told People: "I got out and tried to tell the officers what happened while I was bleeding everywhere. I then was getting Tupac out the car, even when the door was open. I had to go over there bleeding everywhere, take the seat belt off him."

Both men were rushed to the University Medical Center of Southern Nevada.

Knight received treatment and was discharged, but Tupac underwent two emergency surgeries, including the removal of a lung.

On 13 September 1996, at 4.03pm, Tupac was pronounced dead.

Knight revealed the rapper's mother, Afeni Shakur, wanted Tupac cremated immediately, without a funeral or delay.

"I paid a million in cash to make it happen," Knight said.

Later that night, a small group including Afeni gathered to honour Tupac.

Knight said: "A bag with his ashes was passed around. His homies rolled him up. They smoked him."

He added: "You gotta understand, that's what made sense. It was symbolic. It's like… you keep part of him."

Knight, 61, also described how he was unable to join the ritual as he was on probation and could not smoke.

He said: "I told his mother, 'Moms, I'd love to, but if I hit that, I'll get in trouble.' I was probably the only one who didn't hit him."