Mendu Rammohan Rao, dean of the Indian School of Business (ISB) and an independent director on the board of Satyam Computer Services [Get Quote] till recently, has quit the prestigious B-school.

The ISB executive board has accepted Rao's resignation with immediate effect and search for a new dean is underway, said an ISB media release on Thursday.

In the interim, ISB Deputy Dean Ajit Rangnekar, who has been with ISB since 2003, will hold charge as Dean.

The Satyam fiasco has begun to take its toll. After chairman B Ramalinga Raju admitted to fraud and quit, many a head has begun to roll.

"Unfortunately, yesterday's shocking revelations, of which I had absolutely no prior knowledge, mean that we are far from seeing the end of the controversy surrounding Satyam Computers. My continued concern and preoccupation with the evolving situation are impacting my role as Dean of ISB at a critical time for the school. 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," Rao said in a letter to the ISB explaining the reason for his resignation.

On Wednesday, Rao had said that he was 'stunned' by the Wednesday's revelation of the IT major's founder and chairman B Ramalinga Raju. "It has been deeply disturbing for me to read the news reports this morning. I am stunned by this revelation," he had said in a statement on Wednesday.

The Satyam fiasco: Complete Coverage