THE controversy over the Government's anti-terrorism laws was hotting up last night as men arrested in North-East raids last week prepared to sue police.

Civil liberties group Liberty urged the six men from Darlington and Teesside to contact them to discuss taking legal action over possible human rights violations.

The six were released without charge by detectives on Friday night. They had spent four days in custody under the Terrorism Act 2000 after they were arrested as part of Operation Icebolt.

Meanwhile, the Assistant Commissioner of Scotland Yard which worked with the Durham and Cleveland forces in the operation addressed Muslim community leaders to try and ease their concerns.

David Veness said a balance had to be struck between human rights and the need to fight terrorism.

"There will be incidents of people being arrested who are then released without further criminal proceedings," he said. "We must deal with the threat of terrorism consistently with human rights."

Several of the men, aged between 29 and 46, arrested in raids on homes and businesses in Darlington, Middlesbrough, Redcar and Seaton Carew are already considering legal action.

Up to 150 officers, some of them armed, were involved in the carefully co-ordinated series of dawn raids.

Police acted after an anonymous tip-off concerning allegations of money laundering for Islamic groups and buying weapons allegations the men and their families have steadfastly refuted.

One of the six, Palestinian Walid Zamzam, 29, who runs a takeaway shop at Seaton Carew, said that since he returned home he has been too frightened to go out.

"I feel so embarrassed and nervous. I don't feel I can face my customers," he said.

Mr Zamzam has spoken to his solicitor about suing the police for wrongful arrest. His landlord, Salah Ramathan, 37, is also planning to sue because of damage to the flat and shop which he claims happened during the police's ten-hour search.

Mr Ramathan said: "The police have made a blunder. They acted on a stupid phone call and didn't do their homework."

Ibrahim Rachid, of Northgate, Darlington, is also considering legal action and will consult a solicitor today. He said: "I can't believe any of this has happened."

Another man arrested, Majid Mousa, 36, of Acklam Road, Middlesbrough, said he and his wife Soad, 32, were still in shock. He said: "It's like a nightmare. We don't know what sort of damage to my business there will be."

But Mr Mousa, who owns a pizza factory, was happy with the way the police handled the arrests. He said: "I'm innocent and I trust the law in this country."

Under the Terrorism Act 2000, suspects can be held without charge or trial for up to seven days.

A spokesman for Liberty said: "We do have to be vigilant against terrorists, particularly after September 11, but at the moment I believe the police have to give an explanation as to why this operation, which seems to have gone pear-shaped, happened."

Musilm leaders are also concerned. Chairman of Middlesbrough's Jamia Mosque, Mobeen Mehdi, said: "The whole country is looking at these six men but, more damaging in Middlesbrough, is the way some people will look at the Muslim community."

Teesside Labour MP Ashok Kumar said Cleveland Police needed to be "honest and open" about the results of the raids.

Neither Durham nor Cleveland police would comment but said that investigations were continuing.