District Judge I S Mehta enlarged Liyaqat on bail on a personal bond of Rs 20,000 with a surety of the like amount.
The court imposed several conditions on Liyaqat while granting him bail and directed him not to leave the country without its prior permission.
45-year-old Liyaqat was arrested on March 20 while crossing the Indo-Nepal border in Gorakhpur with his family. Liyaqat had said that he had come to surrender under the Jammu and Kashmir government's rehabilitation policy.
The Home Ministry had on March 28 issued a notification facilitating NIA to take over the case after his arrest had generated conflicting versions from Delhi and J&K Police.