Australian Police has admitted that crucial evidence against Indian doctor Mohamed Haneef that his mobile phone SIM card was found at the scene of a UK car bomb plot is incorrect.

It had not been confirmed the SIM card was found at the scene of the Glasgow Airport attack, as prosecutors alleged during the terror suspect's bail hearing last weekend, federal police sources have told Fairfax newspapers.

The revelation has cast fresh doubts over handling of the Haneef case by the Australian Federal Police.

Criticism has come from Peter Faris QC, who has backed the government's new anti-terror laws and Queensland Premier Peter Beattie, who has expressed concern.

The SIM card, the smart card in mobile phones, was found in the possession of one of  Haneef's cousins, Sabeel Ahmed, in Liverpool, hundreds of kilometres away from the failed Glasgow bombing.

No official attempt has been made to correct the public record, despite police sources telling Fairfax they had been aware of the error for some time, The Australian daily said on Saturday.

Asked why Haneef would have provided his SIM card if he knew it was to be used for the purposes of terrorism, prosecutor Clive Porritt, from the Office of the commonwealth Director of Public Prosecutions, told the court it had been intended that the SIM card will be destroyed in the planned explosion when the Jeep was rammed into the Glasgow airport doors.