The Supreme Court Friday stayed the Delhi High Court order granting bail to Kashmiri businessman Zahoor Watali, arrested by the NIA for his alleged role in a terror-funding case involving Lashkar-e-Taiba (LeT) chief Hafiz Muhammad Saeed.

A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud considered the submissions of National Investigation Agency (NIA) that the release of Watali would cause grave harm to the ongoing probe in the terror-funding case.

The NIA was represented by Attorney General K K Venugopal and Additional Solicitor General Maninder Singh.

The bench has now fixed the plea of NIA filed against the Delhi High Court verdict for hearing on September 26 and asked the accused businessman to file his response in the meantime.

The High Court had Thursday said there was no prima facie material to show that 70-year-old Zahoor Ahmad Shah Watali was involved in the conspiracy.

Watali was arrested on August 17 last year by the NIA.

Watali, Hafiz Saeed, Hizbul Mujahideen chief Syed Salahudeen and nine others have been accused by the NIA of "conspiring to wage war against the government" and fomenting trouble in the Kashmir Valley.

In its charge sheet, the NIA has alleged that Watali received money from ISI of Pakistan, the Pakistan High Commission here and from a source in Dubai.