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NEW DELHI, Dec 24 (AFP) - Allegations of spying, kidnapping and torture added more heat to simmering India-Pakistan ties Monday, even as Pakistan President Pervez Musharraf vowed to crack down on two militant groups accused of attacking the Indian parliament.

Indian Defence Minister George Fernandes was in Kashmir on Monday, reviewing military preparedness on the region's disputed border where Indian and Pakistani troops have been on a state of high alert since tensions soared in the wake of the December 13 attack.

India has blamed the Pakistan-based militant outfits Lashkar-e-Taiba and Jaish-e-Mohammad for carrying out the assault at the behest of Pakistani military intelligence.

Fernandes, who has played down the threat of a full-scale war, refused to speculate on the probability of military action.

"What action will be taken and when, cannot be decided beforehand," he told the Aaj Tak television channel. "When the situation arises, we will give a fitting reply," he added.

Last week, India announced the recall of its ambassador to Pakistan and terminated cross border rail and bus links, citing Islambad's inadequate response to demands that it crack down on the activities of Lashkar-e-Taiba and Jaish-e-Mohammad.

During his visit to China, President Musharraf said his government would take steps against the two groups if evidence proving their complicity was uncovered .

"Yes, if we find evidence of it, we would like to move against them," Musharraf said in response to journalists' questions in the southern Chinese city of Guangzhou.

"We are already taking measures to move against all groups that are involved in any form of terrorism everywhere in the world," he said.

India says it has "cast-iron" proof of Lashkar and Jaish's involvement, but has so far refused to make it available to Islamabad.

Pakistan's State Bank said Monday that it had frozen the assets of Lashkar and another Pakistan-based group named by the United States as being involved in terrorism.

"That is not enough, much more needs to be done," Indian foreign ministry spokeswoman Nirupama Rao said.

"Instead of focusing on tackling the terrorist groups on their soil as we have asked, (Pakistan) is diverting attention to other issues."

The border build up in Kashmir reached flash point on Sunday as troops on both sides exchanged fire. Two members of India's Border Security Force were killed in one incident, while both sides claimed to have destroyed a number of enemy bunkers.

Officials said there were further cross-border exchanges of mortar and small-arms fire on Monday.

Indian police, meanwhile, said they had arrested a parliament official for allegedly passing "sensitive" information to a Pakistan High Commission (embassy) staffer.

A police statement said Ajay Kumar, a senior executive assistant in parliament's administrative staff, was caught giving information on defence, atomic energy and ship design to the staffer, Mohammad Sharif Khan.

India ordered Khan's expulsion on Monday.

The statement said Kumar's interrogation revealed that Khan had several times asked him about security arrangements around Parliament House and to arrange a security pass for him to watch legislative proceedings.

Pakistan accused India of kidnapping and torturing Khan and said it had lodged an official protest with Indian authorities.

"During interrogation, (Khan) he was stripped naked, severely beaten and tortured, resulting in visible and internal injuries," the Pakistan foreign ministry said.

Indian Foreign Minister Jaswant Singh firmly denied Monday any custodial maltreatment.

"We deny it completely," Singh told reporters. 

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