Abul Kahar Kalam, 23 and Abul Koyair Kalam, 20, were freed from Paddington Green police station after Scotland Yard said it had completed the search of their East London property.

The pair, one of whom was shot in the shoulder, had been under arrest since the dawn raid a week ago which involved more than 250 police officers.

Scotland Yard said last night that it was aware of the “inconvenience and disruption” that the raid had caused. “We will be contacting the owners to make appropriate arrangements for the property to be handed back to them. We will also be undertaking appropriate restoration work in consultation with the owners.”

Police had carried out the raid after an informant said that he had seen a chemical weapon in the Forest Gate flat. MI5 had been convinced that the informant had persuasive evidence that a group of men in London were plotting to use a chemical device in the capital.

Last night John Reid, the Home Secretary, said: “The police are acting in the best interests of the whole community in order to protect the whole community and therefore deserve the support of the whole community in doing what is often a very dangerous job often involving difficult decisions.”

Muhammad Abdul Bari, Secretary-General of the Muslim Council of Britain, said that the brothers’ release confirmed their innocence and that the organisation hoped “that the appropriate lessons will be learnt by all involved in this tragic incident”. He said that it was not a matter of “apportioning blame” but of ensuring that the foundations were there “to build a genuine partnership between the Muslim community and the police”.

The raid and the subsequent shooting of Mr Kahar has led to renewed scrutiny of the rules of engagement for armed police. It is understood that the officer involved told independent investigators that it was an accident and that his sub- machinegun went off during a struggle on a staircase.

However, lawyers for Mr Kahar said there was no tussle and the officer did not issue a warning before he was hit as he emerged unarmed from his bedroom, dressed in pyjamas.

Earlier in the day more than 100 Muslims protested over the raid, waving placards and calling for the implementation of Sharia — Islamic law — in Britain. The demonstration, which took place outside Forest Gate police station, near the scene of the shooting, remained peaceful, and the protesters were outnumbered by uniformed officers.

Iain Duncan Smith, the former Tory leader, raised fears in the Commons on Thursday that intelligence agencies were being fed false information by extremist groups to target moderate Muslims who co-operate with the authorities.

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