- Flipkart Group CEO Binny Bansal has resigned following allegations of “serious personal misconduct.”
- Bansal has denied the allegations.
- An independent study did not corroborate the allegations, but found Bansal made lapses in judgement.
- In May, Walmart agreed to buy a 77% stake in Flipkart for $US16 billion.
Flipkart Group CEO Binny Bansal has announced his resignation, effective immediately, following an independent investigation into an “allegation of serious personal misconduct,” Walmart said in a press release out Tuesday morning. Bansal has strongly denied the allegations.
The investigation, which was conducted on behalf of both Flipkart and Walmart, did not find evidence corroborating the accusers claims but did however find Bansal to have made lapses in judgement, including a lack of transparency and his response to the situation, the release said.
Moving forward, Kalyan Krishnamurthy will remain the CEO of Flipkart – that now includes the Indian fashion and lifestyle e-commerce portal Myntra and Jabong, which will continue to operate as a separate platform within the company, according to the release. Myntra and Jabong CEO will report to Kalyan, the release said.
In August, Walmart acquired a 77% stake in Flipkart for $US16 billion in an effort to keep pace with Amazon in India.
Walmart shares were little changed following the news. They were up 5% this year.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.