"The three terrorists involved in the attack were reportedly admirers of Zakir Naik," Minister of State for Home Hansraj Ahir said in a written reply.
The Minister said as per the available information, although the mandate of the Islamic Research Foundation (IRF) is educational and social, it is also involved in other activities.
"Noticing certain violations of Foreign Contribution Regulation Act, the IRF has been placed under the prior permission category".
The decision has been taken at a meeting of the Union Cabinet presided over by Prime Minister Narendra Modi.
The Cabinet approved a proposal to declare IRF as an 'unlawful association' under the Unlawful Activities Prevention Act for five years.
The move comes after investigation by the Home Ministry found that the NGO was allegedly having dubious links with Peace TV, an international Islamic channel, accused of propagating terrorism.
According to the Home Ministry, Naik, who heads the IRF, has allegedly made many provocative speeches and engaged in terror propaganda.
The Islamic orator is banned in the UK and Canada for his hate speech aimed against other religions.
He is among 16 banned Islamic scholars in Malaysia.
He is popular in Bangladesh through his Peace TV, although his preachings often demean other religions and even other Muslim sects.
The Mumbai-based preacher who is abroad, has not returned to India ever since the controversy came to light.
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