Yes I remember reading that also.  it seemed somewhat fishy to me that the indian navy got lucky within hours of the war breaking out.  I will see if I can fiind it. another theory I had read was that actually the sailors on Ghazi had defected to India and the boat was subsequently scuttled by the navy.  this story about the sinking was popularized to protect the families of sailors who were still in Pakistan.  now you know where Tom Clancy got his idea for 'Hunt for Red October' ;-)