He was immediately dismissed from his military commission and war honors were withdrawn from him. Subsequently, he was placed in solitary confinement for sometime, though he was later released. Being the last to return supported his reputation as a "soldier's general", but did not shield him from the scorn he faced in Pakistan, where he was blamed for the surrender. Bhutto discharged Niazi after stripping him of his military rank, the pension usually accorded to retired soldiers, and his military decorations. His three-star rank was eventually reduced to Major-General, a two-star rank, but was dismissed from the service in July 1975. He was also denied his military pension and medical benefits, though he lodged a strong complain against revoking of his pension. In 1980s, the Ministry of Defence quietly changed the status of "dismissal" to "retirement" but did not restore his rank. The change of order allowed Niazi to seek pension and medical assistance benefits enjoyed by the retired military personnel. Niazi remained active in the national politics in 1970s and supported the ultraconservative agenda on a conservative platform against Pakistan Peoples Party. In 1977, he was again detained by the police when the martial law was enforced and sought retirement from politics. In 1982, Niazi was summoned and confessed at the War Enquiry Commission led by Chief Justice Hamoodur Rahman and the Supreme Court of Pakistan on the events involving the secession of East Pakistan on April 1975. The War Commission leveled accusations against him of several kinds of ethical misconduct during his tenure in the East Pakistan. The Hamoodur Rahman Commission opined that General Niazi supervised the Betel leaf and imported "paan" using the official aircraft, from East Pakistan to Pakistan. The War Commission indicted him of corrupt and moral turpitude while noting his bullying of junior officers who would resists his orders. General Niazi tried placing the blames on Yahya administration, his military adviser Maj. Gen. Farman Ali, Admiral S.M. Ahsan, and Lieutenant-General Yakob Ali and the military establishment but the War Commission partially accepted his claims by critically noting that General Niazi was a Supreme Commander of the Eastern Command, and that Niazi was responsible for all that happened in the East." Though he showed no regrets, Niazi refused to accept the responsibility of Breakup of East Pakistan and squarely blamed President Yahya. The War Commission endorsed his claims that President Yahya was to blame but noted that Niazi was the Commander who lost the East.