Parrikar also rejected the concept of good and bad terrorism, insisting,"I can say when you grow cactus, the thorns prick everyone."
His comments followed Pakistan's Defence Minister Khawaza Asif's remarks that Saeed's house arrest was in Islamabad's "larger interest" as he could pose a "serious threat" to the country.
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"I hope they understand it...What has been said. If this is part of this understanding, it is a good thing that is happening.
"But we will have to wait till we find out whether it is only because things started burning under their feet or it is real wise thinking," he told a TV channel.
Asif's remarks about the danger posed by the mastermind of the 26/11 Mumbai attacks, in which 166 people were killed, came at an international security conference in Munich, Germany, on Sunday.
Saeed was placed under house arrest under the fourth schedule of the Anti-Terrorism Act (ATA) on January 30 in Lahore, provoking criticism from various outfits loyal to him and allies. Saeed's inclusion in the list was seen as a tacit acknowledgement of his links with militant organisations.
Saeed was earlier this month put on the Exit Control List, barring him from leaving the country.
Saeed was also put under house arrest after the Mumbai attacks in November 2008, but he was freed by a court in 2009.
He carries a reward of USD 10 million announced by the US for his role in terror activities.
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