MUMBAI: Bangalore-based mobile VAS company OnMobile has denied all rumours and allegations against the company's promoter and CEO Arvind Rao.

There was media buzz that the board of directors of OnMobile have ordered a probe against Rao for misappropriation of funds and an external auditor has been appointed to establish charges against him which include diversion of company funds to another entity promoted by him.

A company spokesperson said, “Arvind Rao is not being investigated by the Board for any misappropriation of funds. He is a VAS pioneer and has led OnMobile to much success over the years and enjoys a high professional reputation in the market. Arvind while continuing as managing director, spearheads the international business. OnMobile’s Board includes industry stalwarts and highly reputed professionals. We assure our stakeholders that OnMobile is a professionally managed and board governed company, committed to following the highest standards of corporate governance to maximize stakeholder value. All such rumors and allegations, are baseless and devoid of factual accuracy.”

It was also alleged that OnMobile’s M&A head Sandhya Gupta was terminated by the board a few weeks ago, as part of the probe. “She resigned for purely personal reasons earlier this year. Her departure from the company was not a result of any allegations of wrongdoing,” he said.

The company stated that to ensure that the rest of the business gets adequate focus, the day to day operations of the company are being overseen by a sub-committee of the board.

All appointments of external consultants by OnMobile over the past year have been pursuant to the “OnMobile 2020” strategy announced last year. A company statement said, “The external consultants have been engaged to review, rework and strengthen the Company’s corporate governance policies, including internal control mechanisms, procurement-to-payment processes, risk management framework, succession planning etc.”

MUMBAI: Bangalore-based mobile VAS company OnMobile has denied all rumours and allegations against the company's promoter and CEO Arvind Rao.

There was media buzz that the board of directors of OnMobile have ordered a probe against Rao for misappropriation of funds and an external auditor has been appointed to establish charges against him which include diversion of company funds to another entity promoted by him.

A company spokesperson said, “Arvind Rao is not being investigated by the Board for any misappropriation of funds. He is a VAS pioneer and has led OnMobile to much success over the years and enjoys a high professional reputation in the market. Arvind while continuing as managing director, spearheads the international business. OnMobile’s Board includes industry stalwarts and highly reputed professionals. We assure our stakeholders that OnMobile is a professionally managed and board governed company, committed to following the highest standards of corporate governance to maximize stakeholder value. All such rumors and allegations, are baseless and devoid of factual accuracy.”

It was also alleged that OnMobile’s M&A head Sandhya Gupta was terminated by the board a few weeks ago, as part of the probe. “She resigned for purely personal reasons earlier this year. Her departure from the company was not a result of any allegations of wrongdoing,” he said.

The company stated that to ensure that the rest of the business gets adequate focus, the day to day operations of the company are being overseen by a sub-committee of the board.

All appointments of external consultants by OnMobile over the past year have been pursuant to the “OnMobile 2020” strategy announced last year. A company statement said, “The external consultants have been engaged to review, rework and strengthen the Company’s corporate governance policies, including internal control mechanisms, procurement-to-payment processes, risk management framework, succession planning etc.”