 After Kao's resignation from RAW service in 1977 (reports suggest that he was forced to demit office), Nair succeeded him as the director but his tenure lasted only three months as he resigned from the post, reportedly in protest, when Morarji Desai, the then Prime Minister of India, downgraded the position of the director of RAW from rank of a Cabinet Secretary.He was moved to Minority Commission as its secretary from where he superannuated in December 1978.However, he was involved with RAW operations again with the accession of Indira Gandhi to power again in 1980, and was known to have contributed to the restructuring of the agency.