The founder of the Muttahida Qaumi Movement (MQM), Altaf Hussain, was released on bail on Wednesday, after the Scotland Yard took him into custody in an early morning raid on Tuesday.
The Crown Prosecution Service (CPS) said the current evidence was not enough to charge Hussain at this stage. Police confirmed that according to the CPS, the investigation will continue.
Meanwhile, the Scotland Yard said a man in his 60s, arrested in connection with an investigation into a number of speeches made by an individual associated with the Muttahida Qaumi Movement (MQM) in Pakistan, has been bailed to return to a police station in mid-July.
"The man was arrested at an address in north west London on Tuesday, June 11. He was arrested on suspicion of intentionally encouraging or assisting offences contrary to Section 44 of the Serious Crime Act 2007," it said in a statement. "He was detained under PACE and taken to a south London police station."
As part of the investigation, the London metropolitan police said, officers carried out a search at the north-west London address and at a separate commercial address in north-west London, adding that both the searches were now complete.
"The investigation, which is being led by officers from the Met's Counter Terrorism Command, is focused on a speech broadcast in August 2016 by an individual associated with the MQM movement in Pakistan, as well as other speeches previously broadcast by the same person," the statement read further.
"Throughout the investigation, officers have been liaising with Pakistani authorities in relation to our ongoing enquiries. Enquiries continue," it added.
Earlier, Hussain had refused to answer questions of detectives from Scotland Yard’s counter-terrorism Command Unit,
Hussain was arrested on Tuesday morning and was taken to a south London police station. 15 officers took part in a dawn raid at his north London home.
Altaf Hussain has been arrested in relation to the hate speech of 2016 in which he had urged his followers to take the law into their own hands.