DHAKA: A Pakistani court Thursday granted bail to the alleged mastermind of the 2008 terror attacks in Mumbai, lawyers told the media, a move likely to further inflame tensions with India.

The 60-hour siege on India's economic capital left 166 people dead and was blamed on the banned Pakistani militant group Lashkar-e-Taiba (LeT).

Relations between the two nuclear-armed rivals worsened dramatically after the carnage, in which 10 gunmen attacked luxury hotels, a popular cafe, a train station and a Jewish centre.

Zaki-ur-Rehman Lakhvi, accused of masterminding the violence, was granted bail by a judge in the capital Islamabad, reports The Straits Times.

BDST: 2052 HRS, DEC 18, 2014