It is absolutely clear that Iyer is unhappy.He has not been given a ministry of his choice. He is probably also angered further as he was shifted from the high profile Petoleum Ministry to Panchayat Raj. That is the root cause of his statements. He has been hyporcitical in the sense that he has been a part of the old system also as a buerocrat supporting the wrongs of the then govt.
But some of the points raised by him are very true. Solutions need to be thought about and return to Marxism/Socialism is not one. The main need of the Govt is its sincerity and when that is not there, there can be no possible solution.