In 1996–97, the
Naval Intelligence led by
Rear-Admiral Tanvir Ahmed began investigating the allegations and rumors at the
Navy NHQ surrounding the role of Admiral
S.M. Khan and Admiral Haq. The whole nation became completely aware of the scandal in 1998, when the scandal was exposed. The
Naval Police and officials of the
Naval Intelligence led by R-Adm.
Tanvir Ahmed arrested Admiral Haq but no evidence came out to convict him in 1998. In 1998, Haq
emigrated to the
United States and settled in
Austin in
Texas where he bought a house. In 1999, the
National Accountability Bureau (NAB) announced to open the investigations on
Agosta scandal, with French
Tracfin aiding the investigations, where major breakthrough in the investigation was made in 2000–01. While Haque had a right to fight for his extradition, he choose not to. Civilian prosecution also leveled charges on him of being involved in financial deals made through selling the
metal scrap through the
National Shipping Corporation (PNSC), which caused the
PNSC to lose
$3 million in national exchequer. Upon being convicted, the naval police shifted him in the
Sihala Prison in
Punjab in
Pakistan but soon began his negotiation with the
Government of Pakistan to return the money as
plea bargain in exchange of light sentence and minimal jail time. In 2003–05, Haq returned a total sum of
$7.5 million while in office, which were immediately shifted back to Navy's national account. The amount was said to be enough to pay the salaries of entire navy for two years. After transferring the amount back to Navy's account, Haq was released from the prison and all cases against him were closed as part of the deal, eventually settling in
Karachi. He paid additional
US$ 2.5 million which were deposited to Pakistan Navy's account in two easy installment payments, after which, he was released as the
NAB agents vacated his house in Karachi. In 2013, Haq filed a lawsuit against the
Government of Pakistan, seeking to restore his medical privileges, pensions, and four-star rank, at the
Sindh High Court. Chief Justice of
Sindh High Court, Justice
Faisal Arab (now serving as
Justice in the
Supreme Court of Pakistan), heard his appeal as Haq cited his 43 years of military service in the Navy who fought the
two wars where he was taken
war prisoner by India in 1971. In 2013, the
Government of Pakistan agreed to restore his rank (as former) and limited medical pensions but not all benefits that are enjoyed by four-star officers in the
Pakistani military. ==Aftermath of Agosta submarine scandal==