New Delhi: Flipkart Group CEO, Binny Bansal has resigned following an independent investigation done on behalf of the e-commerce company and its parent firm, Walmart into an allegation of “serious personal misconduct”.
The co-founder has strongly denied the allegations levelled upon him by a former employee of the online retailer, two years back in 2016.
Bansal’s detailed implication was not revealed by the organisation. However, in its statement, the online retailer confirmed Binny’s resignation as a measure for stopping the events from becoming a “distraction”.
“Binny has been an important part of Flipkart since co-founding the company, but recent events risked becoming a distraction and Binny has made a decision to step down,” the statement read.
We (Flipkart and Walmart) had a responsibility to ensure the investigation was deliberate and thorough, the statement added.
According to a Washington Post report, in an email sent to Flipkart employees on Tuesday, Bansal, 37, expressed concern that the incident would become “a distraction” for the team at the company he co-founded in 2007. The allegations in question “left me stunned and I strongly deny them,” he wrote. The email was obtained by The Washington Post.
“While the investigation did not find evidence to corroborate the complainant’s assertions against Binny, it did reveal other lapses in judgment, particularly a lack of transparency, related to how Binny responded to the situation,” the statement noted.
A media reports also claims that it was an issue of “consensual affair” citing internal investigation.
After Bansal’s resignation, Kalyan Krishnamurthy will take over as CEO of Flipkart.
In 2007, Binny Bansal co-founded Flipkart with Sachin Bansal and was serving as the chief operating officer until 11 January 2016 and was promoted to chief executive officer.
In September 2015, Bansal along with Sachin Bansal was named the 86th richest person in India with a net worth of $1.3 billion by Forbes India Rich List. In January 2017 he was promoted to Group CEO.
Walmart, earlier this year, agree to pay $16 billion for a roughly 77% stake in the Indian e-commerce firm, Amazon’s main rival for India’s 1.3 billion consumers.