Rajat Gupta, former chief executive of consulting major McKinsey and accused by the US Securities and Exchange Commission of conspiring with Galleon hedge fund executive Raj Rajaratnam in an insider trading scam, has resigned as the chairman of Indian School of Business (ISB), Hyderabad.
“Rajat Gupta has requested the ISB executive board to relieve him of his board responsibilities till his pending matter with the US SEC is resolved,” an ISB spokesperson said.
Godrej group chairman Adi Godrej is tipped to take over, sources told HT.
“The appointment of the new chairman, will be tabled at the upcoming board meeting on April 2, 2011,” an ISB spokesperson said.
Gupta, who is the co-founder of the ISB, may not attend the upcoming board meeting scheduled for April 2, sources said.
Godrej refused comment on the matter. “No comments,” he said in a text reply to HT.
ISB is one the topmost business schools in India with academic alliances with the Kellogg School of Management at Northwestern University and the Wharton School at the University of Pennsylvania, among others.
Gupta has quit the boards of Genpact, American Airlines, Harman International, Procter & Gamble and Goldman Sachs. He has also opted for “leave of absence” from New Silk Route, a $1.4-billion private equity firm he co-founded five years ago.
He also resigned as the chairman of the governing board of the Public Health Foundation of India (PHFI).