Dhaka outright rejected such views, terming the reasons for India's withdrawal 'unacceptable' and 'unwarranted.' "We see no logic in questioning the security situation here," Foreign Secretary Shamsher Mobin Chowdhury said.

The two-day summit, which was deferred for about a month after a devastating tsunami hit three Saarc member countries, was scheduled to begin in Dhaka on Sunday. Dhaka has almost completed the preparation for hosting the meet.

"We have formally communicated to the government of Bangladesh that India would not be able to attend the forthcoming Saarc summit in Dhaka on the scheduled dates," said Indian Foreign Secretary Shyam Saran at a press conference in New Delhi yesterday.

Pakistan, as the current Saarc chair, announced the postponement immediately after the Indian announcement, "The summit has been cancelled and fresh dates will be worked out after consultation," Pakistani Information Minister Sheikh Rashid said in Islamabad.

Under the South Asian Association for Regional Cooperation (Saarc) charter, the summit cannot be held without the presence of all the leaders of the member states.

The Saarc summits were postponed on eight occasions in the past due to the withdrawal of either Pakistan or India, whose rivalry has long overshadowed the spirit of the seven-nation regional organisation.

The 13th summit was originally scheduled for January 11-13 this year.

"This decision has been taken against the background of recent developments in our neighbourhood, which have caused us grave concern," the Indian foreign secretary said "The security situation in Dhaka has deteriorated in recent days following the fatal attack on the former finance minister of Bangladesh SAMS Kibria."

Giving Dhaka's reaction to reporters an hour after the Indian announcement, the foreign secretary said the reasons given by India as far as it relates to the 'security situation in Dhaka' are unacceptable and rejected outright.

"We are shocked and dismayed at the unwarranted and unexpected decision of the government of India not to attend the 13th Saarc Summit when all preparations had been completed the keep the Saarc spirit and process alive," said Chowdhury.

"Bangladesh has also received words of solidarity from other Saarc countries," he said. "Comprehensive and blanket security arrangements were made at an unprecedented level. All Indian security concerns were fully considered and accommodated."

Referring to the presence of an Indian security team here, Chowdhury said, "It is ironic that India undertook the decision when an Indian security assessment team was still present in Dhaka and consulting our security agencies."

The Indian foreign secretary, however, told reporters in New Delhi that an assessment by the Indian high-level security team was factored into the decision and that violence in Bangladesh seemed to have "intensified" recently.

Speaking on the Nepalese turmoil, Chowhdury said, "With regard 'to developments in the neighbourhood' it is a shared believe that Saarc should not be held hostage in bilateral considerations." In this respect, he referred to the Saarc Charter that says "Bilateral and contentious issues shall be excluded from the deliberations."

"It is regretted that once again a Saarc summit has been postponed at the last moment because of a decision by the government of India. Such postponements go counter to the spirit of and letter of the Saarc Charter," Chowdhury added.

"It is a sad commentary for South Asia that its largest member state should retract its commitment to the Charter on this excuse," said Chowdhury.

Referring to Indian press reports announcing India's withdrawal from the summit from early morning yesterday, Chowdhury said, "The media reports were flooding in far before the official announcement by the Indian government. I will leave it up to you interpret what that implies."

Asked if the opposition Awami League's assertion that the 'law and order' situation here is out of control had influenced India's decision, Chowdhury said, "I will leave it up to your wisdom to decide what is implied by what."

While the Indian foreign secretary in his statement to the press said that India "wishes to reiterate its continuing and consistent commitment to Saarc process and to increase regional cooperation among member states."

Meanwhile, Pakistan also questioned Delhi's decision. Expressing surprise, Pakistan Information Minister Rashid said, "It is beyond our understanding why India refused at the last minute, we are asking them to explain."

Pakistan foreign ministry spokesman Masood Khan, who is in Dhaka for the summit, also told AFP that Pakistan was disappointed with the Indian decision. "Frequent postponements could tarnish the image of Saarc. It was a highly anticipated event, not only in India and Pakistan, but all around the world."

Our New Delhi correspondent adds: The Indian foreign secretary told reporters that there is no question of behaving like a big brother.

Asked if this decision would isolate India when even King Gyanendra of Nepal agreed to attend the summit, he said, "There is no threat of isolation."

"What has happened in Bangladesh and Nepal is not ordinary," he added. "There is a serious situation in Nepal and an increase in violence has an impact on India."