One of the most prestigious and renowned business schools in the Indian sub-continent, the Indian Business school was dealt a major blow today, when one of the premier board member’s of the organization Billionaire Galleon Group founder Raj Rajaratnam was arrested and charged by U.S investigators in the matter of an insider-trading case, that amounts to a whopping $20 million.

According to Rishi Sahai (Managing Director, Cogence Advisors),

“The incident is strange and shocking. Greed has overpowered all the corporate and management rationalities. Incidents like these make it amply clear that corporates and other institutions should go for better screening processes when selecting board members instead of just focusing on an individual’s industry profile.

The arrest of Raj Rajaratnam also came a big shock to the Sri Lankan people, who have for long revered Mr. Rajaratnam as a God sent benefactor because of his US $5 million donation to the Tamil Rehabilitation Organization (TRO). However, the government of Sri Lanka has taken the arrest on a very cautious note, as the investigation indicates that the billionaire’s money might have been used to fund the LTTE rebels, who had created a war zone in Sri Lanka.

During the Sri Lanka -LTTE war, the TRO funds in both the United States and Sri Lanka had been frozen, to prevent any financial proliferation to the Tamil Tigers. As of now, the Central Bank and the Securities and Exchange Commission of Sri Lanka have announced an investigation, that is aimed at the transaction made by Rajaratnam to the TRO.

As per some official sources, the Sri Lankan authorities had in fact, sent a dossier to the US intelligence services, at the time when TRO under intense scrutiny by the U.S. Treasury Department.

According to Channa De Silva (Director General, Securities and Exchange Commission, Sri Lanka),

“We are looking at his recent transactions closely. Given what has unfolded in the US, in light of that, we want to look at his positions here.”

Via IBN-Live.