Professor M. Rammohan Rao has resigned from the post of Dean of the Indian School of Business (ISB) on Wednesday. His tenure was due to over in June this year. He also worked at the Indian Institute of Management, Bangalore, and Stern School of Business, New York University and RBI.

Rao's name has been involved in the biggest ever corporate scam in India, and he presided over the meeting of Satyam's board of directors to approve acquisition of Maytas Properties and Maytas Infra on December 16.

Rammohan Rao said that the development is out of his knowledge and he had no prior knowledge of accounting fraud. He added, "My continued concern and preoccupation with the evolving situation are impacting my role as Dean of ISB. Given that my term with the ISB anyway ends in a few months, I think that this is an appropriate time for me to step down."

Meanwhile, Rao's resignation has accepted by ISB Executive Board. Deputy Dean Ajit Rangnekar has been asked to deliver his services as a dean of ISB till the appointment of new dean. ISB chairman, Rajat Gupta hailed the step down of Rammohan Rao.