The Hindu Business Line : Rammohan Rao quits as ISB Dean

Hyderabad, Jan. 8 In what can be seen as the after shocks of the Satyam fraud, Prof M. Rammohan Rao, a former independent director on Satyam’s Board, has stepped down as Dean of Indian School of Business (ISB) here on Thursday.

Prof Rao’s tenure as dean would have ended in June 2009. “Unfortunately, yesterday’s shocking revelations, of which I had absolutely no prior knowledge, means that we are far from seeing the end of the controversy surrounding Satyam Computer. My continued concern and preoccupation with the evolving situation are impacting my role as Dean of ISB at a critical time for the school,” Prof Rao said in a message to the ISB community.

“Given that my term with the ISB anyway ends in a few months, I think that this is an appropriate time for me to step down,” he explained. The resignation of Prof Rao, who took over as dean in July 2004, was accepted by the ISB Executive Board with immediate effect.

The hunt for the next dean by a search committee involving deans of Wharton and Kellogg schools and noted economist, Dr Raghuram Rajan, is already under way. In the interim, Deputy Dean, Mr Ajit Rangnekar, who has been with ISB since 2003, will hold charge as Dean, according to a release from ISB.

“My fellow Board members and I are fully committed to supporting Ajit and the ISB team in tackling any challenges,” said Mr Rajat Gupta, Chairman of ISB.

Prof Rao’s tenure had seen global recognition to ISB in the form of 20th ranking by the Financial Times, increase in student strength from 125 to 440, and firming up of plans to set up a second campus in Mohali.

Prof Rao, who was the third dean of ISB after Dr Pramath Sinha and Prof Vijay Mahajan, was in the thick of controversy after chairing the controversial board meeting of Satyam Computer Services Ltd which approved the proposal to buy Maytas twins for $1.6 billion on December 16, 2008.

Under question

Though the deal was withdrawn later, the role of Prof Rao as an independent director came under question from various quarters.

Disturbed over the development, 65-year-old Prof Rao quit Satyam’s board on December 29, 2008 and also resigned from the core committees of the Government formed to select top officials in key establishments such as RBI.