An Iranian-born PhD chemistry student has appeared court charged with possessing an AK47 assault rifle, a magazine and four rounds of ammunition which allegedly belonged to the Real IRA.

Amir-Ali Esmaily, from Lisburn Road, Belfast, is alleged to have committed the offence between July 13 and July 18 this year at a house his family owns at Bradley Park, Londonderry.

A detective sergeant from the PSNI's Major Investigations Team told Deputy District Judge James McFarland at Derry Magistrate’s Court that the police believed the defendant kept the rifle and ammunition on behalf of the Real IRA, and that he had links to dissident republicans.

A dozen armed police officers were on duty inside and outside the Bishop Street courthouse for the hearing.

The police witness said the defendant's houses at Lisburn Road and Bradley Park were searched as a result of information they had received.

Two imitation firearms and an air rifle were found in the defendant's Belfast home and the assault rifle and loaded magazine as well as an imitation firearm were found in his Derry home.

“We suspect this assault rifle is linked to a Real IRA show of strength last March.

“We suspect this because we have compared photographs of that show of strength with this weapon.

“Four people are currently in custody in the Republic of Ireland in relation to that,” the detective sergeant said.

“We believe this weapon was being held on behalf of the Real IRA and that it would have been used potentially for intimidation and in attacks.”

The detective sergeant said that after he was arrested, the defendant denied for 48 hours any knowledge of the assault rifle, which was found wrapped in plastic sheets in the garden of his Bradley Park home.

The police witness said the defendant held Irish and Iranian passports and detectives believed he had possession of the assault rifle for five days.

Mr McFarland released the defendant on his own bail of £5,000 plus a surety of £100,000, £40,000 of which had to be deposited in court.