Binny Bansal CEO flipkart quits over charges of 'serious personal misconduct'
Bansal, 37, has strongly denied the allegation, the American retail giant said in a statement.
His decision to step down follows an independent investigation done on behalf of Flipkart and Walmart, even though the probe "did not find evidence to corroborate the complainant's assertions against Binny", it said.
While the statement did not provide details of the "personal misconduct" allegations against Bansal, sources indicated that the complainant was associated with Flipkart a few years ago and is now running her own venture.
This, however, could not be independently ascertained.
The statement pointed out that the "deliberate and thorough" investigation "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".
Bansal's resignation as the CEO of Flipkart Group is with immediate effect. He was serving as the Group CEO after Walmart's mega USD 16 billion investment in the Bengaluru-based company.
Walmart's statement said the recent events "risked becoming a distraction for the company" and Binny had made a decision to step down.
The statement pointed out that Binny had been contemplating a transition for some time and that the company (Walmart) had been working together on a succession plan, which has now been accelerated.
Both Krishnamurthy and Nigam will report directly to the board, Walmart said.
"We remain committed to investing for the long-term and are supportive of the leadership team's desire to evolve into a publicly-traded company in the future," it added.
In an internal email, Krishnamurthy sought to assuage employee concerns stating that "there will be no changes in our operating processes, or to the mission of the company as a result of this news".
"Flipkart will continue to invest heavily in the supply chain, innovation and technology, with a focus on optimising operations and empowering employees... For Flipkart to keep succeeding, it is crucial for our teams to thrive, and we will
continue to do everything possible to ensure you are given the opportunity to do just that," he added.
(With inputs from agencies.)