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Several gunmen began shooting civilians who were cowering in the Crocus City Hall.
The court also imposed a fine of Rs 1.25 lakh on him.
Riyas Aboobacker was convicted by the NIA special court in Kochi.
The SIMI was first banned in 2001 when the Atal Bihar Vajpayee government was in power and since then the ban has been extended every five years.
A person can be named a saint only after the completion of 5 years since one's sacrifice.
He also criticised the influence of Wahhabism in the Muslim community.
The accused persons had conspired and established an ISIS module in India with the aim of radicalising and recruiting impressionable youth, said NIA officials.
Two IS members had detonated their explosive belts in the crowd which had gathered at the cemetery in the southeastern Iranian city of Kerman.
Senior advocate Shyam Divan, appearing for the PFI, agreed with the court's view that the organisation should have first approached the high court and then come to the top court.
Three were killed and over 50 individuals were injured during the multiple blasts at the international convention centre in Kalamassery.