Here are the latest developments in this story:
"This decision is unfortunate. I believe Pakistan didn't do enough; India has provided enough evidence (on Lakhvi's role)," said Home Minister Rajnath Singh. The bail "will serve as a reassurance to terrorists," said Syed Akbaruddin, spokesman of the Ministry of External Affairs.
Lakhvi, 54, was among the seven people arrested for the 2009 attack in Mumbai, in which 166 people died. He has been accused of hatching the conspiracy and training and handling the 10 terrorists, including Ajmal Kasab, who carried out the attack.
"Lakhvi and the others organised four training camps to train the 26/11 terrorists, supplied weapons and explosives to them," the chargesheet against him said.Lakhvi, who had been in Aadiyala jail in Rawalpindi, had applied for bail on Wednesday.
The bail comes as Pakistan lifted the moratorium on death penalty in terror cases. On Thursday, its military chief signed death warrants for six militants who have been on the death row in Aadiyala jail. Reports said the implementation can begin within a week.
The prosecution in Pakistan's 26/11 trial said it was surprised by the court's decision. The order, it said, came despite the presence of evidence against Lakhvi as the trial was drawing to its end.
Pakistan's federal investigation agency prosecutor Azhar Chaudhry, who is handling the trial, said, "Once we get the order, we will appeal against bail plea and demand a stay."
The prosecution lawyers had received threats from Jamaat-ud-Dawah, led by Hafiz Sayeed, a co-founder of Lashkar, reported news agency Press Trust of India.
Hafiz, who has been accused of masterminding the Mumbai attack, roams free in Pakistan. On Wednesday, he appeared on national television and accused India of being behind the Peshawar attack.
India has repeatedly urged Pakistan to control terrorist groups operating from its soil. In the aftermath of the Peshawar school attack, India pledged support to Pakistan.
Reaching out to Pakistan Prime Minister Nawaz Sharif, Prime Minister Narendra Modi said the tragedy was "a call for our two countries and all those who believe in humanity to join hands to decisively and comprehensively defeat terrorism".
Karnataka's 100% Quota Bill For Kannadigas In Private Firms For These Posts Under-Fire Trainee IAS Officer Accuses Pune Collector Of Harassment "Someone Must Have Doubted...": Doctor On Trainee IAS Officer's Disability Claim Nikki Haley, Vivek Ramaswamy To Speak At Republican National Convention JKSSB Constable Recruitment: Enrollment For 4,002 Posts Begins On July 30 Influential US Senator Convicted Of Acting As "Foreign Agent" For Egypt Track Latest News Live on NDTV.com and get news updates from India and around the world.