LAHORE, Pakistan — Islamic radical Ahmed Omar Saeed Sheikh lived openly in this densely populated city near the border with India, even after the Sept. 11 attacks in the USA.

Saeed, 28, who is being held in Karachi in connection with the murder of American journalist Daniel Pearl, hobnobbed with local officials until the attacks in the USA prompted Pakistan's government to withdraw support from Islamic radicals, say intelligence and government officials in the region.

Former Indian government spy chief B. Raman says Saeed was "frequently seen" at local parties hosted by government leaders and "made no secret of his stay in Lahore." As recently as January, he celebrated the birth of his baby at a party he hosted in the city.

Controversy over when and where he was arrested has fueled questions about Saeed's relationship with the Pakistani government. Punjab Police Chief Malib Asif Hyat initially took credit for Saeed's arrest Feb. 12 in Lahore, Punjab province. Hyat said he arranged for Saeed to be turned over to Sindh province police in the southern port city of Karachi.

But Saeed told the anti-terrorism court in Karachi at his initial hearing Feb. 14 that he had been detained Feb. 5, one week earlier than announced, buttressing rumors that Pakistani intelligence agents had taken him into custody and interrogated him before turning him over to the police.

Government and intelligence sources now confirm Pakistan's military intelligence agents took Saeed into custody on Feb. 5. Punjab and Sindh police never explained how the arrest was made, deflecting reporters' questions.

Saeed's parents are wealthy clothing merchants who live in London. His in-laws own a prosperous trucking company in Lahore. Neighbors and a real estate agent here said Saeed's wife and her family moved into a massive two-house compound in November. The opulent complex, which dwarfs neighboring properties, is in a middle-class neighborhood.

Neighbors say they never saw Saeed at the house. Family members at the house, including three cousins who referred to Saeed as a "brother," declined to comment on his case.

But the unlikely contrast between Saeed's public persona as a self-proclaimed Islamic avenger and his private life of privilege raises questions about how his presence in Lahore went undetected.

Pakistani police and government officials deny knowing Saeed moved here after India released him from prison in December 1999.

The Indian government contends elements of Pakistan's intelligence service aided Saeed's safe return to this country. India and Pakistan frequently accuse one another of destabilizing acts. However, Indian officials have offered evidence tying Saeed to terrorist acts. Pakistan's government has said Saeed is an Indian agent but has provided no evidence to support that assertion.

Indian Ministry of External Affairs spokeswoman Nirupama Rao told reporters in New Delhi last week, "We have our own information about this individual's involvement in various terrorist acts, and that after his release in Kandahar (Afghanistan) we know he had moved to Pakistan."

Rao added that "his movement in Pakistan was facilitated by Pakistani (government) agencies."