Riyaz, who was granted the bail by special judge G T Qadri of Maharashtra Control of Organised Crime Act court on the surety of Rs 5,000, is the second out of 21 accused, to get the relief.
Maharashtra ATS had in May 2006 seized 43 kgs of RDX, 50 handgrenades, 16 AK-47 rifles and over 3,000 bullets from the outskirts of Chandvad near Aurangabad.
Over next four years, ATS arrested 21 persons in this connection.
LeT operative and allegedly the key plotter of 26/11 Mumbai terror attacks, Sayed Zabiuddin Ansari alias Abu Jundal is also one of the accused in this case.