Top industry sources disclosed that the government of Tamil Nadu had written a letter to the union law minister, Arun Jaitley, raising objections on the appointment of the Solicitor General of India as an arbitrator of a private company and for taking up a case against a state government body - the TNEB.

Sources said, in order to avoid any embarrassment to the state government, Mr Salve was asked to step down as Videocon's arbitrator. Earlier, the Centre had given a written permission to Mr Salve to take up Videocon's case as its arbitrator.