BCCI and CA reached truce last Thursday with the former withdrawing the complaint it filed with the ICC against Australia skipper Smith for seeking dressing room advice on DRS in the second Test against India.
Speaking about the 'Monkeygate' episode involving Andrew Symonds and Harbhajan Singh vis-a-vis the latest dispute, Clarke said, "I would be very honest about where I saw the situation at SCG at that time. I was very close to Andrew Symonds. I asked him whether he was racially vilified. It was not only about the racial vilification of Andrew. It should have ended right there, continuing with the spirit of the game.
Charged with racial abuse, Harbhajan was initially handed a three-match ban which was later reduced, even as both the boards got locked in a fierce courtroom battle in the aftermath of India's 122-run defeat in the Sydney Test.
"Whatever happened is in previous Test and it's gone. They come out in Ranchi, that was very smart. They might have sat somewhere in CCI and taken a decision to not take it any further," Clarke said at the India book launch of his autobiography 'My Story'.
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"It's fantastic to watch the series as a commentator, as a lover of the game. It will be no different in Ranchi and Dharamsala. We wanted to be competitive. The decision was the right one for the game of cricket."
Smith left India miffed when he looked towards the dressing room for advice on whether to review a lbw dismissal in the Bangalore Test.
India captain Kohli made his displeasure known at the post-match press conference, just stopping short of calling his counterpart cheat.
Clarke said he too has made mistakes in his career but would never cheat.
"I loved to represent my country so much. I really wanted to perform. I didn't want to go and was so disappointed. I've made plenty of mistakes in my career.
Praising Kohli for his leadership on the Indian team,
Clarke said, "As a captain of Australia, you take forward the legacy of every leader the country leaves. There's a standard to take on that job, no matter what team you captain. India is no different to Australia. They want their team to win. Virat knows that and he has his own style. We had one common role. They loved winning.
Clarke remembered Kohli's fine gesture when the Indian came for the funeral of Phil Hughes along with his team-mates during the 2014-15 series.
"The way Virat handled that situation... He came for the funeral. I've utmost respect for that. That period is a lot bigger than the game of cricket. India could have said no but they did not. I will always remember that," Clarke said.
Ganguly quipped that the 'Monkeygate' was a bit more than what the world saw.
"I can guarantee you the Monkeygate will not have its true picture in the book. Because only a Sardarjji would know what another Sardar was saying. You may call it Monkeygate, Hanumangate or whatever gate. I was standing next to Harbhajan Singh when he was saying those words. I know exactly what he meant. Nevertheless the incident was a bit more than just the word Monkeygate," said Ganguly.
Clarke also donated his World Cup winning jersey to the Boria Majumdar Fanattic Sports Museum and Ganguly held it for a photo opportunity as the former India captain said it was not a happy feeling.
"It was not the best shirt I was holding. I know it's a terrific reward as a cricketer, captain and the youngsters of Australia. But this is the same jersey that thrashed us in 2003 and 2015 World Cups (finals and semifinals respectively)," Ganguly said.
"Whatever the curator in Ranchi says, it would invariably turn. The series is open and wicket will turn. Whatever the pitch, whoever plays well will win. Criticise the pitch, yes, but the crux is you have to handle spin.