"I’m happy that no allegation against me was proved, which could have done damage to me, or my country’s interests," Saeed later told supporters. "Thank God, we were vindicated."
Saeed, who has a $10 million U.S. bounty on his head, was released after a government request to continue his house arrest was denied.
Saeed ran the Jamaat-Ud-Dawa organization (Party of the Faith), which is thought to be a front for the Lashkar-e-Tayyaba militant group. India believes that Lashkar-e-Tayyaba was behind the deadly attack in Mumbai.
The State Department released a statement saying the U.S. is "deeply concerned" about this development and indicated the Pakistani government needs to ensure Saeed is "arrested and charged for his crimes."
Saeed's release could once again sour U.S. relations with nuclear-armed Islamabad, which had seen an apparent improvement after the rescue by Pakistan’s military of American hostage Caitlan Coleman and her family on Oct. 13.