M Rammaohan Rao has stepped down as dean of the Indian School of Business in Hyderabad, following further evidence of fraud at computer outsourcing company Satyam, where Prof Rao was on the board of directors. A new board of directors for the company has been appointed by the Indian government.

In a statement to the ISB community Prof Rao said that his continuing preoccupation with the evolving situation at Satyam was having a negative impact on his ability to continue as dean. “This is a difficult decision for me, given my commitment to ISB, its faculty, students, staff, alumni, research and academic associates,” he wrote. “But, it is precisely this commitment that has convinced me that this decision is in the best interest of ISB.”