Addressing a sermon at Lahore's Jamia Masjid Al Qadsia a day after walking free, Jamaatud Dawa (JuD) leader Hafiz Saeed said on Friday that he is "fighting for the freedom of Pakistan and Kashmir".
Pakistani judicial panel's decision to release Hafiz Saeed, head of the Lashkar-e-Taiba (LeT) terrorist group and the man accused by India of being the mastermind of the 2008 Mumbai terror attack, has come as a big shock for India.
Spokeswoman Heather Nauert said that Lashkar-e-Toiba "is a designated Foreign Terrorist Organization responsible for the death of hundreds of innocent civilians in terrorist attacks, including a number of American citizens".
"The Pakistani government should make sure that he is arrested and charged for his crimes", Nauert added.
He was detained in January following U.S. pressure Islamabad to rein in extremists but was released this week because of a lack of evidence and led Friday prayers at a mosque in Lahore.
Punjab Assistant Advocate General Sattar Sahil said the government law officer had presented "some important evidence" to justify Saeed's detention, but all three members of the board unanimously rejected it and ordered his release.
"Since 2012, the United States has offered a USA $10 million reward for information that brings Saeed to justice", Nauert said in a statement.
The move outraged the US and Indian authorities, but Saeed's spokesman Yahya Mujahid confirmed his release, calling it a "victory of truth".
India says Saeed is the main plotter of the 2008 Mumbai attack in which 166 people were killed between 26 and 29 November.
Pakistan and India both claim all - but control only a portion of - Kashmir, which occupies the southern foothills and slopes of the Himalayan mountains.
"Although there are only few days left in this year but we will continue our struggle in the next year and mobilize people and take forward our movement to free Kashmir", Saeed said to the supporters.
December 2008: Pakistan bans JuD.
"I fight for the cause of Kashmiris". It is the third time that the cleric has been released by courts after Islamabad briefly detained him twice in the aftermath of the attacks in November 2008.