India's most wanted man Hafiz Saeed on Tuesday was a free man. Saeed is wanted for the audacious attacks in Mumbai last year which killed over 160 people.

Hafiz Saeed, the head of the Jamaat-Ud-Dawa (JuD), a front group for the Lashkar-e-Taiyaba has been set free by the Lahore High Court. The court said there wasn't enough evidence to hold him any longer.

In court his lawyer argued that the ban was not enough since it didn't call for Saeed's arrest and there was no evidence to link Saeed to Mumbai. The Pakistani government however had told the court that he does have a link with the Al-Qaida.

He was placed under house arrest last December after the UN banned the JuD following the Mumbai attacks.

New Delhi says it is disappointed and Foreign Minister SM Krishna met Prime Minister Manmohan Singh and the interim US Ambassador on this.

"There is a conspiracy against Pakistan. I don't support it in any form. I will try to prove Islam is not a religion of terror," said Hafiz Saeed.

Some of the evidence against Saeed and the Lashkar in the dossiers that New Delhi handed over to Pakistan includes:

A statement by the surviving terrorist Ajmal Qasab about being trained by the LeT

And phone intercepts between the LeT's Zaki-Ur-Rehman Lakhwi and the terrorists

The Indian government has described Saeed's release as regrettable and disappointing.

"Pakistan is not sincere," said P Chidamabaram, Union Home Minister.

New Delhi is now waiting to see if Islamabad appeals against the order.

Hafiz Saeed's release has been another setback for the PPP government which so desperately seeks to improve relations with India.

However, it is clear that if the government wants to keep Hafiz Saeed under detention it will have to provide some solid evidence against him and his organization JuD.