Flipkart Group Chief Executive Officer Binny Bansal on Tuesday resigned from his post following an investigation into an allegation of “serious personal misconduct”, Flipkart and Walmart Inc said in a statement. Walmart is the largest shareholder in the Indian e-commerce firm.
Walmart said Bansal decided to step down as a “recent event risked becoming a distraction”.
An independent investigation was conducted on behalf of Flipkart and Walmart into the allegation of personal misconduct, the statement said. Bansal has denied the allegation.
“Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough,” the statement said. “While the investigation did not find evidence to corroborate the complainant’s assertions against Binny, it did reveal other lapses in judgement, particularly a lack of transparency, related to how Binny responded to the situation. Because of this, we have accepted his decision to resign.”
Kalyan Krishnamurthy will now continue to be the chief executive officer of Flipkart, which will now include Myntra and Jabong, it said. Ananth Narayan, who was the CEO of Myntra and Jabong, will report to Krishnamurthy.
‘Stunned by the allegations,’ says Bansal
Bansal, in an email to Flipkart employees on Tuesday, said he was stunned by the ellagtiosn against him and that it was best that he steps down. “These have been challenging times for my family and me,” Bansal wrote, according to Business Standard. “I am concerned that this may become a distraction for the company and the team. In light of these circumstances, I feel, it is best to step away as chairman and group CEO.”
According to Moneycontrol, Bansal said he will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors.