In a setback to Mohammed Haneef, Australian authorities on Monday invoked immigration laws to detain him, shortly after a court granted the Indian doctor bail in connection with the failed UK terror plot.

Haneef has had his visa cancelled and will be taken into immigration detention, Immigration Minister Kevin Andrews announced.

The Indian doctor was granted bail in the Brisbane Magistrates Court on Monday morning after being charged on Saturday with 'recklessly' providing support to a terrorist organisation.

The Australian Broadcasting Corporation quoted Andrews as saying that he has used his powers under the Migration Act to cancel Haneef's visa because he has failed the character test.

"In particular, a person fails the character test if -- and I quote -- the person has or has had an association with someone else or with a group or organisation whom the Minister reasonably suspects has been involved has been or is involved in criminal conduct," he said.

Andrews said Haneef will remain in immigration detention while the legal proceedings against him continue.

The 27-year-old doctor from Bangalore has been in the custody of the Australian Police since July two in connection with the June 29-30 failed UK terror plots.

Haneef's second cousin Sabeel is under arrest in connection with the failed plot in Britain. Sabeel's brother who allegedly drove a flaming Jeep Cherokee into the Glasgow airport is battling for life in a UK hospital.

The Indian medico was granted bail on a surety of 10,000 Australian dollars, has to report three times a week to Southport police and must notify the Commonwealth DPP of his residential address. His passport has already been seized and he is barred from applying for a fresh one.