In another case of corporate mis-governance, Arvind Rao has quit as CEO of OnMobile Global, the country's largest mobile value-added service solutions provider.
According to media reports, after a board meeting on Monday, Rao resigned as the company's special review "identified weaknesses in some processes".
"Recognising that these weaknesses took place during his tenure, Rao submitted his resignation with immediate effect and the board has accepted the same," the Business Standard quoted a statement from the company.
The special review was done by the company's legal advisors Amarchand Mangaldas & Suresh A Shroff, helped by KPMG.
On June 28, shares of the company had slumped 17 percent after the news of a likely corporate governance issue was flashed by news channel ETNow. The report had said the company is probing Rao for alleged misappropriation of funds.
Recently, Rao was stripped off many of his responsibilities and asked to concentrate mainly on international operations.
According to reports, Mouli Raman, a co-founder and executive director, has been given the interim role of managing director.
After the news of a likely financial fraud at the company, many investors such as Smallcap World Fund Inc had offloaded their stake in the company.
A PTI report on Monday said foreign fund house Goldman Sachs Investments Mauritius sold 6.55 lakh shares of the company for Rs 2.22 crore through open market transaction.
According to bulk data available with the stock exchanges, Goldman Sachs offloaded the stake at Rs 34.01 apiece, the report said.
The company, once valued about Rs 3,000 crore, had plans to list on the New York Stock Exchange.
Updated Date: Dec 20, 2014 10:06 AM