Forbes has an excellent article on what went wrong at OnMobile. It was a certain Mr. Arvind Rao, it seems.
On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares. Rao already owned over 10 percent of the company’s shares.
At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them.