The Australian government today formally apologised to Indian doctor Mohammed Haneef and said sorry for wrongly detaining him on terror charges. The formal apology, issued by Australian government, came after Haneef reportedly received a substantial but undisclosed compensation payout from the government following his bungled detention on UK terror related charges in 2007. The apology said, the Australian Federal Police acknowledges that it was mistaken and that Dr Haneef was innocent of the offence of which he was suspected. Haneef's lawyer Rod Hodgson said, the apology reaffirmed his client's innocence. As part of the mediation, Haneef has agreed not to proceed with defamation charges.