The Indian doctor accused wrongly of being linked to the London and Glasgow terrorist plot was left homeless last night after being released from an Australian jail.

Mohammed Haneef, 27, was allowed to return to his apartment on the Gold Coast outside Brisbane under “residential detention”. But his solicitor said it had been rendered uninhabitable by damage caused in two police searches.

The landlord said that Dr Haneef’s lease had expired because he had failed to pay rent while in custody.

“He’s officially no longer a tenant here,” Steve Boscher, manager of the apartment block, said. “I don't want to seem like some kind of a***hole but his lease has run out here.”

The Gold Coast Hospital, where Dr Haneef had worked as a junior doctor for nine months, said that his job was still open and that he would be welcomed back. However, his work visa remains revoked.

Last night Dr Haneef was taken from Wolston Correctional Centre, Brisbane, to immigration offices in the city, where officials interviewed him for two hours about his intentions. He then left for a flat at an undisclosed location. He must report to the Immigration Department every day by phone and every few days in person. He will not get his passport back until his immigration status is decided.

His wife, Firdaus Arshiya, who is in Bangalore, said she hoped that her husband would be allowed to return to India within days.

Dr Haneef was released from prison after Australia’s law enforcement authorities admitted that he had been wrongly charged with “recklessly” supporting the terrorist group behind last month’s bombing attempts.

Prosecutors withdrew charges against him after a review of the case by Commonwealth Director of Public Prosecutions, Damian Bugg, QC.

Alan MacSporran, a lawyer acting on behalf of Mr Bugg, told a court that the DPP’s review revealed two errors. In the first, Australian authorities claimed that Dr Haneef’s mobile phone Sim card was found in a burning Jeep used in the Glasgow attack. It was later revealed that the Sim card was in the possession of Dr Haneef’s cousin in Liverpool.

The second error related to claims that Dr Haneef had lived with his cousins Sabeel and Kafeel Ahmed in Britain before arriving in Australia. Mr Ahmed was allegedly driving the Jeep in the Glasgow attack. Explaining why charges had been dropped, Mr Bugg said: “On my view of the matter, a mistake has been made.”

- A preliminary hearing in the case of two doctors charged over the failed bombings went ahead at the Old Bailey yesterday after a technical problem prevented the men from appearing by video link from Belmarsh prison. Bilal Abdullah, 27, and Mohammed Asha, 26, will be given a transcript of the proceedings.

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