As part of the conditions, the police placed a limit of 150 on the number of people allowed to attend the funeral, but 1500 showed up for the procession, which was also marked by the launch of fireworks.
Crowds chant through the street during the funeral
As a result, the police said they would demand NIS 50,000 from the terrorist's family.
"As part of preserving peace for the public and ensuring its security, and to ensure public order, the Israeli police have decided in accordance with the law on conditions that allow the terrorist's body to family is transferred a funeral in Umm al-Fahm, "read a police statement.
"As said before, the wording of the order, drawn up by the police, was illegally violated last night after many hundreds participated in violation of the order that burial times, the route through which his body was carried, defined and delineating the number of participants ( up to 150 family members) and so on. "
The statement went on to say that the conditions for holding the funeral had been set by the police with the family and not as part of a legal process involving the High Court of Justice or negotiations with groups representing the interests of the family.
"Due to non-compliance with the conditions, the police have opened an investigation into the presumption of non-compliance and violation of an order and will act to pay the money, in accordance with the provisions of the law," concluded statement.
Israel handed over the body of 30-year-old Mahamid to his family at 1.30 am and fireworks were immediately launched in honor of the occasion.
During the funeral procession participants shouted slogans such as: "We will sacrifice our lives for the shahid (martyr) and the hero."
Israel often sets conditions and limits to the funerals of terrorists to prevent processions from descending to incitement meetings, as they have done in the past.
Defense Minister Avigdor Lieberman also spoke about the events of the funeral. "Do you wonder why Umm al-Fahm should be part of Palestine and not of Israel?" The sight of hundreds of people taking part in the funeral of a terrorist with a Palestinian flag and calling for "in spirit and blood that we redeem the martyr & # 39; gives you a definitive answer to the question, "said Lieberman.
"The plan I published years ago for territorial and population swaps is more relevant than ever," he said.
Ali Mahamid, a relative of the terrorist and a resident of Umm al-Fahm, said that the body should have been transferred after being shot.
"The police have postponed the transfer to torture the family, from our point of view, Ahmad is a hero and a martyr Today we have Eid al-Adha (Festival of Sacrifices) Now we are happier after the funeral of a martyr in a dignified and historic procession have changed, "Ali said.
Another family member repeated the claim made by the family that Mahamid had a history of mental illness and had committed suicide several times in the past.
"The police murdered him on the spot in cold blood, instead of shooting him in his leg, they gave him a court warrant and killed him," said the relative about Mahamid, who had no history of security-related crimes.
"In my opinion, a special committee must be set up to control police behavior in the field, and yesterday they killed Ahmad, tomorrow they will kill more people."
A day after the attack, Mahamid's family told Ynet
that he is not a terrorist but a sick person with serious psychological problems.
"He suffers from a mental illness and he has tried to commit suicide several times." We did not know he was in the Al-Aqsa mosque on Friday, he will usually never come there, "said Ahmad's brother Naseem in an interview.