While former supreme court judge John Clarke, who chaired the inquiry, rejected Haneef's lawyer's request to seek more powers for the inquiry, federal attorney-general Robert McClelland said the powers would be strengthened if necessary and assured that relevant agencies have promised to cooperate.
"You can be assured it's a full inquiry.... If at any stage an uncooperative witness impedes the inquiry, Clarke is welcome to ask the government for an extension of his powers," McClellard said. "I sincerely don't believe that will occur," he said, adding that he believed that the inquiry will proceed in a full, proper and comprehensive manner.
Haneef's lawyer Stephen Keim had requested Clarke to ask the federal attorney-general for royal commission powers, that also sought the right to force witnesses to give evidence or provide documents.
Justice Clarke said he had received assurances from government agencies involved -- including the Australian federal police which had received severe flak for its role, Australian Security Intelligence Organisation and the Commonwealth Director of Public Prosecutions -- that they would fully co-operate with the inquiry.
"I am confident that the inquiry can be effectively conducted in the present form," he said, adding he would request an interview with Haneef.
Haneef, 27, was charged after his SIM card was allegedly found with an accused in the failed car bombings last year in the United Kingdom .He spent three weeks in detention in Australia before charges were dropped, but he returned to India as his work visa was cancelled
Keim said Haneef did wish to be interviewed by Justice Clarke and wanted to provide all the information he could so the facts could be laid bare.
"It is apparent.. that a series of appalling decisions have been made by police, prosecution and immigration officials including possibly by persons at a high level in those organisations," he told the inquiry.
"Haneef continues to have his reputation imperilled and his personal safety threatened by public statements by the Australian federal police that he continues to be the subject of investigation by that organisation.
"Because Haneef's reputation continues to be sullied by innuendo that he is a person of sufficiently dubious conduct to deserve to be investigated for now over 10 months and continuing, he is very keen to clear his name, once and for all," Keim said.
Justice Clarke said he expected to receive all written submissions by May 16. He is due to deliver his report to the federal government by September 30.