As a Hindutva fascist thug it is most distressing for me to directly contradict fellow thug (and also RC), but in this case one can not but agree with Talented Mr Pai.[*]
However first let me point out the issue involved here. Yes apology by Australia to Haneef would be nice. Also since Haneef had Indian passport, same thing holds for Indian government.
But apology to Haneef or Indian government is not the main issue here. Main issue remain fairness and appearance of it. State has monopoly over use of force. If state wishes, and if it is within law, it can restrict freedom, or incarcerate citizens. This monopoly means that this power should always be discharged fairly and any hint of political vendetta, or worse cover up should never arise. Sure for terrorism we may have to enact restrictive or intrusive laws, but the conduct should always be above board, and motive beyond accusation.
Unfortunately fair conduct has been sorely missing from this incident. There is no question that considering the circumstances, sudden departure of Haneef was highly suspicious. However the investigation was bungled, to say the least, and from evidence gathering, the whole focus shifted to cover up and scoring political points. This is a real big egg in face.
The purpose of this is not merely to expound on conduct of state, there is a relevant aspect to it. Islamic terrorism is less of a physical war and more of information war. Those fighting terrorism are hampered by the denial and falsification of bleeding heart liberalism. In order to maintain narrative of multiculturalism and moral equivalence (from which the liberalism derive sustenance and authority) , liberals are trying their utmost to confound the situation. Incidences like above are nothing but a weapon in liberal propaganda. Such occurrence must be prevented from happening.
PS. Note I am not arguing that this will alienate Muslims. I have come to believe that Muslim intellectuals (radicals and so called moderates alike) are too enamoured with this narrative of victimization at hands of West/Christian/Jew/Hindu, that nothing others can do, is going to appease their demands or redress the grievance.