Flipkart's Chief Executive Officer Binny Bansal on Tuesday, 13 November, announced his resignation over a probe into an allegation of "serious personal misconduct," the group’s parent company Walmart Inc said in a statement.
According to Reuters, his resignation came over a sexual assault allegation, that dates back to a few years. A person familiar to the matter told Reuters, "In late July... an allegation came to us. It was a claim of sexual assault against Binny."
The source said, “The investigation could not corroborate the allegation. It did, however, surface a lack of transparency on Binny’s part,” as quoted by Reuters.
The person making the allegations was a former executive of Flipkart and made them after quitting the company.
Kalyan Krishnamurthy Will Continue as Flipkart CEO: Walmart
Without shedding light on the allegations, Walmart said Bansal has denied the charges levelled against him. The statement reads:
“His decision follows an independent investigation done on behalf of Flipkart and Walmart into an allegation of serious personal misconduct. He strongly denies the allegation. Nevertheless, we had a responsibility to ensure the investigation was deliberate and thorough. 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 continue as the CEO of Flipkart, which will now include Myntra and Jabong, Walmart added.
Ananth Narayanan will remain the CEO of Myntra and Jabong, and will report into Krishnamurthy.
Bansal’s resignation marks the exit of co-founders from India’s largest online retailer.
Sachin Bansal (not related to Binny) had exited the company they founded more than a decade ago after selling his stake to Walmart earlier this year.
I am Stunned: Bansal
Bansal has denied the allegations saying they have stunned him, The Times of India reported quoting an email sent by him to his employees.
“The allegations left me stunned and I strongly deny them. The investigation, however, did bring to light lapses in judgment, particularly a lack of transparency, related to how I responded to the situation. These have been challenging times for my family and me. 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,” he said in the email.
He further said that he was mulling moving out of the Walmart group.
“For some time, I have been mulling over the right time to step away from an operating role at Flipkart Group. My plan was to continue in my current role for a few more quarters to continue the transition after closing the deal with Walmart. However, my decision to step down has been accelerated by certain personal events that have taken place in the recent past,” he said.
He also said he will continue to be a large shareholder in the company and serve as a member of the board of directors.
(With inputs from The Times of India, Reuters)
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