Pakistan today rejected India's demand to hand over three terrorists and criminals, including underworld don Dawood Ibrahim [Images], saying that action would be taken against individuals found involved in terrorist activities under Pakistani law.

Islamabad's [Images] response to a demarche from India seeking the handing over of the three came hours after security forces launched a crackdown on Lashker-e-Toiba, arresting suspected Mumbai attack mastermind Zakiur Rehman Lakhwi and eight other militants.

India had made the demand in the second demarche handed over to Pakistan in the wake of last week's terror attacks in Mumbai that killed over 180 people and injured dozens more.

Pakistan's response, handed over by Foreign Secretary Salman Bashir to Indian High Commissioner Satyabrata Pal during a meeting this evening, indicated that Islamabad would itself take action against individuals if information provided by New Delhi [Images] proved they were involved in terrorism, diplomatic sources told PTI.

The sources said the reply stated that action would be taken against such individuals "with the ambit of Pakistani law". 

The response also stated that Pakistani authorities would act on any information provided by India on the Mumbai attacks, they said.

The response also reiterated Pakistan's offer to conduct a joint investigation with India into the Mumbai attacks and for full cooperation, including intelligence sharing, the sources said.