However, he does deserve a closer look. The serial doesn't say whether he first approached CM for Uday's hand, or whether CM was the one who asked, in order to get Uday & Sudha separated. If the latter, Kesav-ji doesn't deserve the criticism he gets - that fault is solely w/ CM. In that scenario, Kesav-ji learnt from his daughter's sasural that they wanted a bahu, and connected them to his friend, who wanted a groom for his daughter. If the former, Kesav-ji would only deserve blame if he was the one who tried to browbeat CM into forcing Uday to accept that girl: CM should have been the one to tell him that Uday was already after a different girl. That said, if CM was the one behind the whole rishta being initiated in the first place despite knowing what Uday wanted, then it's poetic justice that Minal was the one banned from returning.
Also, when Kesav-ji last visited them, he brought gifts for both their bahus, despite knowing that Sudha was the one who upstaged his friend's daughter. (And unlike Minal/CM who gave Sudha her gifts out of spite at not being able to give them to their first choice, he gave it very graciously to both Jyoti & Sudha) He didn't seem to hold Sudha upstaging his friend's daughter against her, but just mildly criticized Uday for going about it the way he did. On that point, he was right: Uday did do the wrong thing by agreeing to the Kota engagement in the first place, which is the cause of the grief that the Kota family is now facing. Aside from that, he praised Uday's choice.
The only negative about him then was reacting hysterically to the reporter's disclosure that Sudha was the girl who got into a disco brawl. As a relative of the Vashisths thru marriage, he should have given them a proper hearing, just as the Vashisths should have given Jyoti.
In the last episode where he suggested to CM that Pankaj marry the girl, he pointed out how CM tried to bribe them, and therefore, he is suspicious about what she tells him. In fact, he even told her that if she managed to get Pankaj married to this girl, then he'd believe what she had to say about Jyoti. In other words, he has his suspicions about CM and still seems to give Jyoti the benefit of doubt, despite his friend's family being pissed @ Jyoti for supposedly being behind their daughter's humiliation. That said, it's strange that he thinks that the best his friend's daughter can do is a blind divorcee. Instead, he should have asked which other unmarried members of the families were there who were not committed to anybody, and then dug up Deepu, and maybe Pratik (if he isn't still an item w/ Sajni, but confirm that w/ him first).
It may well be that he is as bad as everyone thinks he is, but I do have my doubts about it, since the main person he's angry w/ is CM.