Pakistan has already proven. India can always deny the genuiness of passport, and she has already done that. But the Iranian visa is a problem. Either this guy was operating in his personal capacity that I highly doubt, or he was on a mission. Any sane person can't digest the claim that he was doing business in Iran on fake passport and visa. What was the reason if he did that in his personal capacity?
I know that spies operate in both countries, but it's the first time an officer is arrested. Now you say that he was retired, I say even then he was an officer, a Lt. Colonel level officer.