``We have agreed to restore him as director only till we select a higher level officer,'' Mishra told Eenadu Television.

He described the Supreme Court's observations in the Bezbaruah case as ``severe embarrassment for the government''.

``Heads might roll following the findings of attorney general Soli Sorabjee who has been asked by the Prime Minister to look into the whole episode. We are waiting for his report which is to be submitted at the earliest.

``If deliberate negligence is pointed out on the part of those who drafted the affidavit or those who were responsible for the omission of the particular word, then firm action will certainly follow. It is very difficult to say on who all the axe willfall until we get all the facts'', he said.

Mishra rejected as unfounded the charge that some secretaries had conspired to restrict the post of CVC to an IAS officer.

On charges that the Prime Minister's office was exercising influence over all major policy and administrative matters, Mishra said, ``We don't want to concentrate the powers in the hands of the Prime Minister''.

He said, ``If ministers want to take up something with the Prime Minister, they should go directly to him or discuss in the cabinet. But sometimes there are problems between and among ministries. Then we step in''.

On the stand off between Urban Affairs Minister Ram Jethmalani and senior IAS officials of his ministry, he said it was unfortunate.