The Grand Mufti is seen in the video in the company of several other persons, including women, at a gathering where a local artist is singing ghazals while playing harmonium.
Ahmad drew widespread criticism for his presence at the musical event as he had issued a "fatwa" against the first all girls rock band of Kashmir saying singing was "unislamic".
The three-member team decided to disband the rock group following the fatwa issued by the Grand Mufti in January this year.
"It was not a musical event. It was a seminar on life of noted literary person Akbar Haideri which was organised by Aziz Hajini and Rukhsana Jabeen (Director AIR Srinagar).
"The programme began with recitation of Holy Quran and at the end Kaiser Nizami read some of the verses of Akbar Haideri," he said.
Ahmad said the news reports about the video were an attempt to tarnish his image.