The ministry of external affairs said that this confirms the "lack of seriousness" on Pakistan's part in bringing terrorists to justice and its nefarious designs to shield and support non-state actors.
"India, as indeed, the entire international community is outraged that a self-confessed and UN-proscribed terrorist is being allowed to walk free and continue with his evil agenda," MEA spokesperson Raveesh Kumar told a press conference in New Delhi.
Describing Saeed as the "prime organiser" of the November 26, 2008 Mumbai terror attacks, Kumar said the banned Jamaat- ud-Dawah head is also responsible for unleashing numerous other terror attacks against Pakistan's neighbours.
"His release confirms once again the lack of seriousness on the part of the Pakistani government in bringing to justice perpetrators of heinous acts of terror, including by individuals and entities designated by the UN.
"It also appears to be an attempt by the Pakistani system to mainstream proscribed terrorists. It is evident that Pakistan has not changed its policy of shielding and supporting non-state actors and its true face is for all to see," Kumar said.
Saeed will soon walk free after a Pakistani judicial body on Wednesday ordered his release from house arrest, in a setback to India's efforts to bring to justice the perpetrators of the 2008 Mumbai attacks.
The banned Jamaat-ud-Dawah head, who carries a bounty of USD 10 million announced by the US for his role in terror activities, has been under detention since January.
Responding to a separate query, Kumar said India has sought sovereign guarantee from Pakistan on the safety and security of Kulbhushan Jadhav's wife if she visits that country.
Earlier this month, Pakistan said that it will allow convicted Indian death row prisoner Jadhav to meet his wife, months after India had requested Islamabad to grant a visa to his mother on humanitarian grounds.
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