Shirin Dalvi, editor of the Mumbai edition of the daily Avadhnama newspaper, was arrested by police in the town of Mumbra in Thane district, close to the financial capital.
The editor was arrested under section 295A of the Indian Penal Code, which bans malicious and deliberate acts intended to outrage religious feelings.
"She was arrested by us, produced in the court and granted bail. We are investigating the matter," SM Mundhe, senior police inspector in Mumbra, told AFP.
The Indian Express said several readers approached police in Mumbai and Thane after Urdu paper Avadhnama reprinted the Charlie Hebdo cover image, which was published after gunmen stormed the magazine's offices in Paris on January 7 and killed 12 people.
Mundhe did not confirm details of the Charlie Hebdo cover in question and AFP was unable to reach staff who could comment at Avadhnama, which has several editions across India.
Last week, tens of thousands across Indian Kashmir, Afghanistan and Pakistan took to the streets to protest against Charlie Hebdo's cartoons.
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@Pity: Who told you we support freedom of speech against Muslims? See with your own eyes. Whenever anti muslim/sikh/ Christian stuff comes up in india its banned, cases are filed/people arrested under section of constitution hurting other religions religious sentiments. Say a word here against any religion get a court case after you. Indian institutions don't tolerate insult to other religion. But the same rule doesn't apply to anti Hindu content That time it's freedom of speech and those who oppose with words,dharna are extremists and taliban. They don't gun or bomb you but still they are still extremist as per govt definition and arrested. In india Da vinci code(anti Christian), MSG(controversial sikh guru) satanic verses(anti Muslim), the cartoons french mags published(anti Muslim) banned and condemned by certain section of media and govt both. But paint, write, make movies derogatory to Hinduism is wah Art! freedom of expression,Liberty. Some states go to the extent of making anti Hindu movies tax free in their state like UP state did recently. I am hindu. My religion teaches me to be unbiased and secular. Freedom of speech should be equal for all or restricted for everyone. One law for all whatever it is. Other wise it is pseudo secularism(for india) We just don't support any form of violence or brutaly killing someone to protest a cartoon or movie be any religion. Mouth is enough to do that under the same principle "freedom of speech".
Shameful and totally unacceptable! It may be ok for Europe but India must NEVER allow hurting the feelings of any religious group!! The editor must be make accountable.