Police are investigating events linked to the funeral and wake of the mother of INLA man Patsy O'Hara, who died in the 1981 hunger strike.
Dozens of people wearing military-style uniform, berets and dark glasses attended the funeral in Londonderry.
Unionist politicians criticised the paramilitary display at the funeral in Londonderry on Saturday.
But Edel Kelly said it was what her grandmother wanted.
"She meant the world to me, to my sisters and my brothers as well and to a whole lot of people in Derry, because everyone knew Peggy O'Hara," Ms Kelly said.
"My granny organised everything herself before her death, she wanted what happened at the wake and she wanted what happened at the funeral."
It was reported earlier this week that shots were fired over Mrs O'Hara's coffin.
The Irish National Liberation Army (INLA) is a republican paramilitary group believed to have been responsible for more than 120 murders from its formation in 1975 until its ceasefire in 1998.
Ms Kelly defended the paramilitary theme of the funeral and she also criticised deputy First Minister Martin McGuinness.
After the funeral, he had tweeted: "Honoured to attend Peggy O'Hara's funeral Mass this morning. Masked men parading after did little to respect the memory of such a good woman."
But Ms Kelly disagreed.
"I'm just speaking from my granny's point of view because I knew what her feelings on Martin McGuinness were. He's actually disrespecting her as the mother of a hunger striker.
"It's something that my granny wanted. If he's condemning that, then he's condemning the wishes of my granny.
"If it happened in their tradition I would have no problem with that. Patsy O'Hara died. He gave his life for Ireland."
DUP East Londonderry MP Gregory Campbell was critical of the police response at Mrs O'Hara's funeral.
"Despite our efforts with the police, it would seem that there were no visible signs of police in close proximity to the funeral cortege on Saturday," he said.
"Men and women dressed in paramilitary garb with faces covered were free to march, for almost two miles, around the streets of Londonderry."
Ulster Unionist Ross Hussey said people would expect to see convictions "after this brazen display of paramilitary thuggery".
Responding to the criticism,  PSNI Assistant Chief Constable Will Kerr said the nature of their operations are made on a cases by case basis.
"There is no 'one size fits all' approach however where offences are disclosed they will always be investigated.
"These sorts of displays and paramilitarism have no place in a modern Northern Ireland.
"We absolutely reject any suggestion of bias in policing. Such remarks are inaccurate, unhelpful and ill-informed."
Edel Kelly believes her grandmother's death is being used a political football.
"As we walked along from Longtower chapel, down past where we used to live in Ardfoyle where Peggy brought us up, everybody on Bishop Street came out and blessed themselves.
"We didn't go through any contentious areas, it wasn't about that. It was about honouring my granny and the suffering that she's gone through all these years.
"They shouldn't be bringing this into politics."
The granddaughter of veteran republican Peggy O'Hara has defended a paramilitary display at her funeral.