In 1966, he was once again named Undersecretary of Education for Technical and Vocational Education and President of the Tehran Polytechnic University. He held these two positions until his retirement from full-time government work in 1968. After retiring from full-time government service, he established the Naficy Technikum, a private, combined technical college and secondary technical school, which placed emphasis on practical work. He spent most of his effort in the 1970s on developing that institution. At the same time in the 1970s he was asked to serve as Undersecretary for Human Resources Development at the Ministry of Transportation, on a part-time basis. He held these two positions until the 1979 revolution. After the revolution, Habib Naficy continued as President of the Naficy Technikum for almost a year. He was arrested in early 1980 by a group of Revolutionary Guards and Technikum staff close to them, who made charges against him (citizen arrest), although there was no government warrant for his arrest. The charges included his allegedly writing reports on dissidents while working at the Iranian Embassy in Washington, D.C. notably about Sadegh Ghotbzadeh, who was a close aide to Khomeini, and served as post-revolution head of Iranian Radio and Television and as Foreign Minister, before falling afoul of the Islamic Government and being executed in 1981. Naficy was kept in jail for ten months before being tried. Many of his former students and employees attended his trial to defend him. He was cleared of charges and released in 1981. He died in 1984. In recent years, the Islamic Government has recognized Naficy’s contributions and held a ceremony in his memory at the Amir Kabir University.