MCA will put OnMobile under scanner: Moily

Yesterday,OnMobile8217;s Managing Director and CEO Arvind Rao resigned from the post amid allegations of financial irregularity and his resignation was accepted by the Board.

The company said based on a recently concluded special review by its legal advisers and KPMG,weaknesses had been identified in some processes and 8220;recognising that these weaknesses took place during his tenure,Rao has submitted his resignation8221;.

It added that the company has initiated steps to rectify all the weaknesses.

In the last few weeks,there had been reports of the company setting up a probe against Rao to look into alleged misappropriation of funds. The company had,however,denied 8220;all rumours and allegations,which are baseless and devoid of factual accuracy8221;.

OnMobile8217;s Co-founder and Executive Director Mouli Raman has now been given charge as the interim Managing Director as the company has initiated a search for a new CEO.

8220;I respect Arvind8217;s decision8230;As a company,we are committed to upholding the highest corporate governance standards and we seek the continued support of all the stake holders to help OnMobile realise its true potential,8221; Chairman of the Board H H Haight had said.

Shares of the company gained 8.93 per cent to close at Rs 36.60 on the BSE.