Supreme Court Grants Bail to Separatist Leader Shabir Ahmed Shah in Terror Funding Case, Citing Long Incarceration

In a significant legal development, the Supreme Court of India on Thursday granted bail to Kashmiri separatist leader Shabir Ahmed Shah in a terror funding case registered by the National Investigation Agency (NIA). Shah had been in custody since June 4, 2019.

A bench comprising Justice Vikram Nath and Justice Sandeep Mehta passed the order after noting the prolonged duration of Shah’s imprisonment and observing certain “anomalies” in the ongoing trial. The bench indicated that a detailed order would follow, which would outline “stringent bail conditions” for the leader’s release.

The case originates from an investigation initiated by the NIA in 2017, where 12 individuals were booked on allegations of a wide-ranging conspiracy to disrupt peace in Jammu and Kashmir. The agency alleged that the accused raised funds to orchestrate stone-pelting, damage public property, and “wage war” against the Government of India.

Shabir Ahmed Shah was arrested in June 2019. The NIA contended that Shah played a “substantial role” in the separatist movement by inciting the public to demand secession. Specifically, the agency alleged that he eulogized slain terrorists as “martyrs,” received funds through hawala channels, and utilized cross-LoC trade to finance subversive activities.

During the proceedings, Senior Advocate Colin Gonsalves, representing Shah, presented rejoinder arguments emphasizing the length of his client’s incarceration—nearly five years without a trial conclusion. The defense argued that the continued detention violated the principle of a speedy trial.

Conversely, Senior Advocate Siddharth Luthra, appearing for the NIA, opposed the bail plea. The agency relied on findings from the Delhi High Court, which had previously denied Shah relief on June 12, 2025. In that order, the High Court had observed that there was a possibility of Shah “carrying out similar unlawful activities” and “influencing witnesses” if released.

erns regarding the trial’s progress. During the hearing, the Justices pointed out several “anomalies” in the trial process and specifically took note of the “long incarceration” Shah had already undergone.

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While the apex court had previously refused interim bail on September 4 last year, it had issued a notice to the NIA to respond to Shah’s challenge against the High Court’s denial. After hearing both sides on Thursday, the bench concluded that bail was warranted, subject to strict conditions to be specified in the upcoming detailed judgment.

The decision marks a shift from the Delhi High Court’s stance, which had ruled that the gravity of the allegations regarding secessionist slogans and terror funding outweighed the prayer for liberty.

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