Indian doctor Mohammed Haneef, held by Australian police on terror charges, was on Friday released from custody after the case against him collapsed dramatically in a court with the prosecution admitting mistakes, causing huge embarrassment to the federal government.

The end to the 25-day detention of the Bangalore doctor, charged with recklessly providing support to a terrorist organisation by leaving his SIM card with his cousin, one of the suspects in the failed UK terror plot, came this afternoon at a Brisbane magistrate's court following a review.

"On my view of this matter a mistake has been made...," Commonwealth Director of Public Prosecution Damian Bugg said, adding that he withdrew the charges because he was satisfied 'there was no reasonable prospect of conviction.'

Haneef's lawyer Peter Russo said his client was free but he had no idea where he would go because he has no home after he failed to pay rent for the Gold Coast unit when he was in detention.

Image: Dr Haneef's lawyer Peter Russo and cousin Imran Siddiqui speak to media persons outside the Brisbane Magistrates Court.
Reportage: PTI | Photograph: Bradley Kanaris/Getty Images Coverage: The Indian link in UK plot

Next