Former Goldman Sachs director Rajat Gupta to take "leave of absence"

Last Updated: Sun, Mar 13, 2011 08:20 hrs

Former Goldman Sachs director Rajat Gupta is planning to take "leave of absence" from the management of the private equity fund New Silk Route which he co-founded five years ago.

He plans to take leave of absence from his 1.4 billion dollars private-equity firm amid allegations that he leaked inside information regarding the powerhouse Wall Street bank to hedge-fund billionaire Raj Rajaratnam.

Parag Saxena founding partner and CEO of New Silk Route said that its chairman is taking the leave "to avoid any distraction and ensure New Silk Route's continued focus."

The New York Post quoted Saxena as saying: "We will respect Mr. Gupta's request. We believe that he will be exonerated."

It is the sixth company Gupta has shed ties with since the Securities and Exchange Commission's explosive allegations accused Gupta of tipping his partner Rajaratnam to confidential information about Goldman and Procter and Gamble (P andG).

However, Gupta has denied these allegations.

Gupta resigned from P andG and resigned from Goldman last year as the federal prosecutors were looking at him in connection with Rajaratnam, who is currently on trial in Manhattan federal court for insider-trading. (ANI)

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