Godrej group chief Adi Godrej on Saturday took over as the Chairman of Indian School of Business, replacing Rajat Gupta who had put in his papers in the light of the controversy over his alleged involvement in the Galleon hedge fund scam.

Adi Godrej, who has been a founding member at the school is the second chairman and will provide strategic direction to the school.

“Rajat has put in passion in developing the school. While we were a little concerned that he had resigned, I pay my tribute to his services which helped the school attain such growth. ISB’s image has not affected in any way and it will continue to reach greater heights,” said Godrej after the board unanimously decided to elect him the chairman.

Out of the 30 members, around 14 members were present at the meeting. Rajat Gupta, the former Goladman Sachs director is facing civil charges by the US Securities Commission for allegedly leaking inside information to Galleon group founder Raj Rajaratnam.

Gupta is said to have had confidential details regarding the investments to be made by Berkshire Hathaway

The 62-year-old Rajat Gupta had also quit from other Boards like Procter& Gamble, American Airlines and its parent company AMR and Genpact. He also resigned from Bill & Melinda Gates foundation and sought leave of absence from private equity firm New Silk Route.

It was not the first time however that the school had seen unceremonious exits. Prior to this Dean M Rammohan Rao for his association with Satyam Computers and founder director Anil Kumar in the light of the Galleon scam had stepped down from their posts.

However, defending the position of the school the newly elected chairman Godrej says, “The school cannot be upheld for the scams or the involvement of the directors in it. Indeed one should appreciate that they had assumed responsibility and stepped down even before proved guilty.”

Meanwhile 569 students from the B –school who graduated on Saturday are said to have achieved complete placements.

“The image of the school has not taken any hit and all the placements were excellent this year. In fact I can say on behalf on the Godrej group that we had a tough luck as we wanted to recruit more students from here. And the offers were far in excess of the students,” said Godrej.

According to Ajit Rangnekar, Dean ISB, the school will actively pursue progress at its new campus in Mohali. “Our immediate focus will be mohali campus even as we continue commitment towards research based knowledge and enhancing business leadership.”