Terror charge against doctor dropped

Prosecutors withdrew the charge against Mohammed Haneef in the Brisbane Magistrates Court after a review of the evidence by the federal Director of Public Prosecutions Damian Bugg found his office should never have recommended it.

"Mistakes are embarrassing. You're embarrassed if you do something wrong," Bugg told reporters in Canberra. "I'm disappointed that it's happened and I will first thing next week try and obtain a better understanding of how it came about," he added.

The government responded by saying Haneef, 27, would be freed from custody while Immigration Minister Kevin Andrews considers whether he will change his decision to revoke the 27-year-old doctor's visa.

Haneef will be free to return to his apartment in the Gold Coast city in Queensland state, but must report daily to a department official. It is not clear when he will be released.

His wife, Firdaus Arshiya, told reporters in Bangalore she hoped her husband would fly home to India within days. "I'm happy he's been proved innocent," she said.

E. Ahmed, India's junior foreign minister, said India would support Haneef's request for a bridging visa so that he could leave Australia on his own accord, rather than be deported.

Haneef has been in custody since July 2, when he was arrested at Brisbane International Airport as he was about to fly to India on a one-way ticket.

Haneef had been charged with providing reckless support to a terrorist organisation because he gave his mobile phone SIM card to his second cousin, Sabeel Ahmed, in July last year. He had faced up to 15 years in prison if convicted.

Bugg said there was insufficient evidence to prove the charge, describing the mistake as "upsetting".