The worldwide recall involves plastic pre-school toys, including replicas of popular children's television characters such as the Cookie Monster, Elmo, Dora and Big Bird, which were manufactured in China.
The resignations follow an audit of the Indian operations of Mattel by a well-known audit firm, experts say.
Around 80 men and women are expected to enter the fray.
Bali Padda will head the second-largest toymaker in the world.
Peter Broegger, senior vice-president (Asia-Pacific), Mattel East Asia, will visit India this month in an attempt to restore confidence among stakeholders, rattled by a spate of departures by senior executives.
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