K.S. Jayaraman has a piece in Nature entitled Report Row Ousts Top Indian Scientist (probably behind a paywall). Leaving aside the bit about "top scientist," let me focus on the new information in Jayaraman's report. In the following, bold emphasis has been added by me:
"Ayyadurai says that the report — which was not commissioned by the CSIR — was intended to elicit feedback about the institutional barriers to technology commercialization."
"Our interaction with CSIR scientists revealed that they work in a medieval, feudal environment," says Ayyadurai. "Our report said the system required a major overhaul because innovation cannot take place in this environment."
[Deepak] Sardana [co-author of the report] [has written] to science minister Prithviraj Chavan on 19 October saying that "it is not possible for me to continue working without your immediate direct intervention" because of the problems triggered by the report.
"I am more worried that the incident will dampen the enthusiasm of Indian institutions to hire expatriates in the future," says Valangiman Ramamurthy, the former science secretary of the government's Department of Science and Technology, who recommended Ayyadurai's selection.
Just one quick comment. Ramamurthy may have "recommended Ayyadurai's selection," but he's being silly in suggesting that it'll affect the hiring of expats.
Sure, Ayyadurai is an NRI, but are all NRIs Ayyadurais?
For the record, Jayaraman's piece does salvage the situation by quoting several others -- Gangan Prathap, Rajan Sankaranarayanan, and Samir Brahmachari -- who don't see things the same way as Ramamurthy.