OnMobile CEO Arvind Rao steps down

Post a crucial board meeting today, mobile VAS services provider OnMobile's CEO and co founder Arvind Rao stepped down paving the way for a new CEO. This comes after reports of financial irregularities at the company which first emerged in March of this year, with allegations that Arvind Rao was involved as well.

KPMG, the internal auditor, which worked with legal experts to come out with a special review on these allegations which the company’s board considered today, reports CNBC-TV18’s Sunanda Jayaseelan. After that crucial board meeting, the company says it recognises that there are some weaknesses in that system. That’s all they are terming it as for the moment. The board meeting today took into consideration a report by internal auditors KPMG and legal experts including Amarchand & Mangaldas and others. They studied a financial irregularities, reports of which first emerged earlier this year also alleging that Arvind Rao who of course was the CEO and co-founder was involved in some way in those financial irregularities. As of the moment, Mouli Raman who is a co-founder and the managing director will take over. CNBC-TV18's understands the company has started the process of looking for a new CEO. The board is in favour of hiring a CEO from outside the company. In a detailed statement sent earlier this evening, the company says "Arvind has contributed greatly to OnMobile’s growth. As a company we are committed to upholding the highest corporate governance standards and we seek the continued support of all stake holders to help OnMobile realise its true potential." OnMobile is one of the largest valued-added services providers in the mobile space. It was incubated at Infosys and on its board have some names like HH Haight, Naresh Malhotra, Harit Nagpal, and Rajiv Khaitan.