Saeed, who was detained yesterday at his Lahore headquarters, has been shifted to his residence which has been declared as a sub-jail by authorities in Punjab province.
The provincial authorities have also started to remove the banners of Jamaat-ud-Dawa (JuD) from the roads of Lahore.
National flags have been hoisted at the JuD offices in Lahore, instead of party flags, on the directives of the provincial home department.
"The detention of Hafiz Saeed could help ease tensions between nuclear-armed foes Pakistan and India, although New Delhi has not yet responded," Express Tribune commented.
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It said that the 2008 Mumbai attack brought Pakistan and India to the brink of war after 10 gunmen killed 166 people in a rampage that included attacks on two luxury hotels, a Jewish center and a train station.
Saeed has denied any role in the attack and has distanced himself from LeT, while leading his charity JuD.
"This government has buckled under the pressure," JuD spokesperson Nadeem Awan said who also accused India of pressurising the government.
Another spokesperson, Farooq Azam, announced protests in Karachi by "different religious and Kashmiri leaders".
The paper said a senior Pakistani defence ministry official said Islamabad had not been contacted by the new administration of US President Donald Trump but had been feeling US pressure on the issue.
"Trump is taking hard decisions against Muslim countries, there is open talk of actions against Pakistan also. So yes, this was a consideration," said the official.
included names of Saeed and four others -- Abdullah Ubaid, Zafar Iqbal, Abdur Rehman Abid and Qazi Kashif Niaz -- in the Watch List as per UNSC 1267 Sanctions and ordered their preventive detention.
Ubaid, Iqbal, Abid and Niaz were also also taken into preventive custody, Pakistani media reported.
Punjab government's action comes amidst pressure on Pakistan from the Trump administration that it must take action against JuD and Saeed to avoid sanctions.
JuD is the front for the banned Lashkar-e-Taiba (LeT) terror outfit which is responsible for numerous terror attacks in India, including the Mumbai terror strike of November 26,2008, which was masterminded by Saeed.
Earlier too Saeed was put under house arrest after the Mumbai attack, but was released about six months later in June 2009 after a court order.