Ministry of External Affairs Spokesperson Raveesh Kumar also said that the order "exposes Pakistan's duplicity" in taking action against terrorists and terror groups operating out of its soil.
Yesterday, the Islamabad High Court set aside a decision by the Election Commission of Pakistan (ECP) to reject the application of Jamaat-ud-Dawah's political front Milli Muslim League (MML) for registration as a political party.
It sent the case back to the ECP asking it to proceed further on the application by giving the party an opportunity of hearing.
Responding to a question on the issue, Mr Kumar said, "It seems, this is an attempt by Pakistani establishment to mainstream him, his system as a political party. And this is a way of shielding the activities he earlier indulged in."
"It is a very shocking development which completely exposes Pakistan's duplicity in taking action against terrorists and terror groups operating out of Pakistani soil," he said.
Last month, a decision was taken at a plenary session of the Financial Action Task Force (FATF), an international task force mandated to combat terror funding and money laundering, to put Pakistan in the grey list.
It will be placed in the grey list in June.
Mr Kumar said Pakistan is mandated under the UN law to take action against Saeed.
"I think, the true face of Hafiz Saeed and true face of Pakistan is for all to see. Not only India but also the international community feels that the action which should be taken against Hafiz Saeed has not been taken," he said.