MUMBAI: Arvind Rao, CEO and managing director of Bangalore-based mobile VAS company OnMobile, has quit the organisation with immediate effect and the board has accepted the same.

Mouli Raman, co-founder and executive director will take on the role of interim managing director, while the company is in search of a new CEO.

OnMobile chairman of the board HH Haight said, “I respect Arvind’s decision. 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 the stake holders to help OnMobile realize its true potential.”

As reported by Radioandmusic.com earlier, the board of directors of OnMobile had ordered a probe against Rao for misappropriation of funds and had appointed audit firm KPMG  to probe the matter.

The company released a statement today saying that based on a recently concluded special review completed by legal advisors Amarchand Mangaldas & Suresh A Shroff along with other advocates duly supported by KPMG, the board of directors took on record the report submitted and noted that the review had identified weaknesses in some processes. The company has initiated steps to rectify all the weaknesses.

“While the review has identified some weaknesses, strong alternate controls have ensured that the company did not suffer any loss. Recognizing that these weaknesses took place during his tenure, Arvind Rao has submitted his resignation. The company recognizes his valuable contribution as one of its founding promoters,” the company press statement said.