District Judge Poonam A Bamba allowed the agency's plea for custody after it said that the accused was required to be confronted with evidence and needs to be taken to various places as part of the investigation.
The court refused to allow the NIA plea for two-week custody.
Mr Watali was arrested from New Delhi yesterday by the agency for alleged involvement in a terror funding case. Earlier, the agency had carried out raids in the premises of the businessman and of other suspects.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)