One man was shot and injured during the controversial raids in Forest Gate, east London, which came amid heightened security fears in Britain following the July 2005 suicide bombings in London.

The Independent Police Complaints Commission (IPCC) said it had received 153 complaints from residents affected by the "terrifying experience" when police burst into two houses in Forest Gate on the night of June 1, 2006.

At least two of the 11 occupants were hit, one over the head, while the IPCC also received complaints about swearing, weapons being pointed and neglect of the arrested men while in custody.

But the report clears police of the most serious allegations, including use of excessive force, and has been described as a "whitewash" by Mohammed Abdul Kahar, who was arrested alongside his brother, Abul Koyair.

It is likely to complicate relations between some British Muslims and police at a sensitive time -- earlier this month, nine people were arrested in Birmingham, central England, in anti-terror raids which again sparked protests.

Six men were charged, one over an alleged plot to kidnap and kill a British soldier, and three were released without charge.

One of those freed, Abu Bakr, later said that Britain had become a "police state" for Muslims and that British terror laws were "designed specifically" for them.

Kahar, whose shooting in the shoulder during the Forest Gate raids was ruled accidental by a previous IPCC report, said the latest probe gave police a "green light" to carry out anti-terror operations any way they wanted.

He complained that the police never disclosed who the "criminal" informant was or what intelligence they had.

In a joint statement issued through their solicitors, families caught up in the events said they were "shocked" that the IPCC had not probed how police had assessed the "entirely false" intelligence which led to the raids.