The Hindu Business Line : ISB Dean quits RBI selection panel

Hyderabad, Jan. 6 Prof Mendu Rammohan Rao, Dean of Indian School of Business (ISB) and former independent director of Satyam Computer Services, has resigned from the selection committee to choose Deputy Governor for the Reserve Bank of India.

Sources said Prof Rao took the decision owing to severe pressures from different quarters following the controversy surrounding the Satyam’s board decision to invest in the companies controlled by its Chairman, Mr B. Ramalinga Raju.

Satyam effect

With the role of independent directors becoming a major subject of discussion after the December 16 Satyam board’s decision, Prof Rao put in his papers along with three other independent directors.

It may be recalled that Mr Abani Roy, Member of Parliament representing the Revolutionary Socialist Party, had written to the Prime Minister, Dr Manmohan Singh, appealing to him to remove Prof Rao from all key Government selection panels keeping in view the Satyam controversy.

Prof Rao is also on the selection committees that consider candidates for the post of Chairman of TRAI and SEBI.

He is also a member of BHEL board and Chairman of Andhra Pradesh Industrial Development Corporation.

Incidentally, Prof Rao’s term at the ISB is scheduled to end in June.