While applauding Cricket Australia's stand on the issue, Waugh said that board CEO James Sutherland knows "what happened was wrong".
"It was a fantastic Test match. It's a shame we are focussing on one incident. I would go with what Steve has said. I would take him at face value. The best part was umpires stepped in and stopped at then and there. Looking back Smith will be embarrassed and must have learnt a lesson," Waugh said during an interaction.
"Someone from ICC needs to look into the matter and bring it to a finality. Look we need to move on. Probably he would be cautioned. It was a high intensity game," Waugh said during 'Royal Stag Barrel Select Perfect Strokes'.
The reason Waugh wants an ICC intervention is he wants an end to this debate.
"Because we are going to be arguing back and forth for the next six days with more and more people getting involved in it. Like you are asking me and my opinion comes out in the papers and becomes another issue. So ICC should resolve this and just make a statement so that we can all move on. Smith has already said that he has admitted making mistakes, so no point continuing as it's not good for relations between the two sides," Waugh said.
"Both captains need to have a bit of a chat at some stage and need to realise that they are going to play tough. Both are patriotic captains but no point in playing up their arguments in press."
"These are couple of issues from both teams about how the games is played. It's being played in pretty good spirit but right now it's bit on the edge," Waugh said.
"Of course, he cares. I mean when another respected cricketer comment like that, than it's going to be hurtful. But Virat Kohli is a tough guy. He will take notice and obviously responded in a way that it obviously did affect him. End of the day, he will have a bigger fish to fry than what Ian Healy says. I know as a captain you can't be liked by everyone. You play in your own style, he plays a combative style of cricket and that's what Indians love about him."
"Of course, he is the captain of our country and from the chairman (CEO) of the board I would expect that. At the same stage, James Sutherland would have also realised what happened was wrong and shouldn't happen again and I am sure wouldn't happen again. That's what we are going take from this that lesson has been learnt."
The bat size is supposed to change and reports of David Warner's current piece of wood will have to be scrapped.
"He (Warner) will be hitting 20 rows back instead of the 30 rows back now!," Waugh said in jest.
Does cricket need a red card, Waugh said:"Look they are going get one. I don't know about a red card but there can be a yellow card. I don't know how it's going to work. It gives umpires more power that's a good thing. Puts players on notice that they can't go over the top."
On spinners dominating the show, Waugh said:"Indian bowlers -- the quicks have bowled well. Certainly the batsmen have not had so much fun so far. Probably set to continue as there are challenging pitches. The belief is that Australians don't play well on spinning tracks. We saw what happened in Pune, we can play on those pitches. I think all bowlers from both sides are in the game. Even if quicks are not taking qickets, they are tying up one end, playing role in bowling partnerships.
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