Details of conversation between Headley and Rana, submitted by prosecutors to a Chicago court, indicates that the Lashkar-e-Taiba (LeT) was giving priority to its attack on the National Defence College over other targets.

Attorneys from the US Department of Justice opposed the bail application of Rana, saying he is a danger to the community and might leave the country if set out on bail.

If convicted, Rana, Pakistani-born Canadian citizen and a resident of Chicago, faces a maximum sentence of 30 years.

He was arrested by the FBI on terror charges along with his school friend Headley, a US citizen, who was booked on the charges of plotting attacks in India and Denmark.

Headley's bail plea is scheduled for December.

The reference to the National Defence College as a target was made by the duo during their conversations on September 7, which was recorded by the FBI.

"In the same conversation, Headley and Rana discussed Denmark and other targets, including the National Defence College in India - Rana, in fact, used the English word 'target' in this discussion," the FBI informed the court. The Department of Justice also contested Rana's plea in his bail application that he was "duped" by Headley and that he is innocent.

Rana, in his bail application, claimed there were many individuals willing to pledge their homes and savings as security for his release.

He offered to put six houses as security for the bail application, all having a combined value of nearly USD 1 million. However, the prosecutors opposed the bail. The court would hold the next hearing on November 10.

The National Defence College trains selected senior Defence and Civil Services officers in national and international security-related fields and promotes research and understanding of various linked issues.

In its amended complaint filed before the Chicago Court last month, the FBI said Rana and Headley had discussed and named multiple targets of their planning in their conversation on September 7.

"More specifically, Headley listed four targets, one of which was 'Denmark', then commented '[a]fter that if I will pray for any other action call me a thief. God may help me complete this task'.

"Later in this same conversation, Rana asked Headley to 'pass along a message' to Individual B (an unidentified LeT leader)," the FBI said in its affidavit.

The two Chicago-residents then discussed a fifth target.

Headley referred to the earlier discussion, and stated words to the effect of "oh my friend, not four, five, five". While Rana laughed, Headley stated "Defence College" twice, and Rana commented "right, this is it. I knew already".

"That one, uh, I thought that was the target", Rana continued. Headley responded, "I don't know but once he (LeT leader) comes then it will be known, but I am going to ask him to do that one first."

Rana responded, "in this matter -¿ defence [UI]," the FBI said.

The FBI had last month busted the terror plot under which LeT was planning to use an American national in planning a major attack in India -- raising an alarm, particularly given that LeT and Headley talked about targeting a mysterious "Rahul".

The FBI in its charge sheet filed before a Chicago court, said the Consul-General of Pakistan in Chicago personally knows both Rana and Headley as all three of them are from the same high school.

According to the website of the Pakistan Embassy here, Dr Aman Rashid is the Consul General in Chicago.

But the FBI affidavit does not say whether the Consul General was aware or had any inclination of their terrorist connection of Rana and Headley.