Builder, 63, denies possessing military-grade explosives and ammunition found in garage

• Police found half a pound of PE4 plastic explosives in knotted Tesco bag
• Discovery made on shelf in outbuilding in Wembley, North West London
• Chanel shoe box on a shelf contained five rounds of 8mm blank rounds 
• Khalid Rashad, 63, denies unlawfully possessing the material at court

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Pleading not guilty: Khalid Rashad, 63, denies unlawfully possessing the material

Military-grade plastic explosives and seven rounds of ammunition were found in a builder's garage near Wembley Stadium as part of a counter-terrorism investigation, a court heard today.

Police found half a pound (226g) of PE4 plastic explosives in a knotted Tesco carrier bag on a shelf in the outbuilding in Wembley, North West London.

In a Chanel shoe box on a shelf, along with a number of audio cassettes, were five rounds of modified 8mm blank rounds.

A projectile had been fitted to the rounds to make them ‘live and viable’ the Old Bailey was told.

They also found one unused 9mm round of ammunition and a cartridge case in a white plastic tub.

With the addition of a ‘grip switch’ the equipment was capable of setting of an explosion that could kill, William Boyce QC, told the Old Bailey.

‘In short, nobody should be in possession of these things, for obvious reasons.

 The explosion could be significant and cause serious and even fatal injuries to those in close proximity and serious damage to property,’ he told the jury.

Khalid Rashad, 63, denies unlawfully possessing the material and claims that it ‘must have been put there by someone else,’ the court was told.

He was not charged with terrorism offences but Mr Boyce said: ‘The issue appears to be stark and completely straightforward.

‘The defendant does not claim he had any lawful reason for possessing these items, he accepts unreservedly that they should not be in his possession.

‘He advances the argument that he did not know they were there and someone else must have put then there, and if he did not know they were there, he must be not guilty.

‘However, you may feel after hearing the evidence, that they are something he put there himself or he allowed someone else, with his knowledge, to put them in his outbuilding and he therefore provided a storage facility, and on either basis, he was in unlawful possession of those items.’

The items were found as part of a ‘lawful search warrant’ executed at the semi-detached house in Monks Park on April 14, 2015, three streets from the football stadium.

The operation was conducted by officers from SO15, Scotland Yard's Counter-Terrorism Command, the court heard.

Police, realised there was building work going on in the garden and effectively another property with a brick and tile garage which needed a separate search warrant.

The explosive was said to be of the type previously used by the British Army and was accompanied by 2ft (599mm) of black safety fuse, an initiator and a British military issue percussion cap.

There was also around 5ft (1.39m) of detonating cord, which also appeared to be British military issue.

At 2.30am, during the search, the adjoining property was visited by a couple in full Islamic dress, who arrived and left while police were seeking a second search warrant, without allowing officers to enter.

DC David Cann from SO15, who was present during the search, denied planting items in the garage or allowing anyone else to do so.

Rashad denies possessing 226g of PE4 plastic explosive, two modified 9mm rounds of blank ammunition and five modified 8mm blank cartridges.

The case continues.