Saeed, the alleged Mumbai terror attacks mastermind and chief of the Jamaat-ud-Dawa (JuD) was placed under house arrest four days ago.
The Pakistani authorities had also barred him from leading Eid prayers.
Saeed's house arrest came three days after police in Faisalabad registered two FIRs under the Anti-Terrorism Act for inciting people to wage jihad.
While India has continuously been demanding stern action Saeed and has provided Islamabad half a dozen dossiers containing proof regarding Saeed's involvement in the 26/11 carnage, Pakistan maintains that there are not evidence against him.
India sees Saeed's arrest as a face saving excercise and sources believe that if Lashkar chief is not punished for the 26/11 Mumbai attack, it will have a negative impact on bilaterial relations and ensure limited dialogue.
It is not only India but US is also exerting pressure on Pakistan to act against Saeed recently.
US envoy to India Timothy Roamer had earlier urged Pakistan to punish Saeed. (ANI)