Probe against Flipkart’s Binny Bansal reveals “consensual affair,” but found lapses in his judgement

A day after co-founder and chief executive officer of e-commerce company Flipkart Group, Binny Bansal resigned over an alleged 'serious personal misconduct’, sources said that investigators concluded Bansal and the woman had a consensual affair.

The accusations against him came in July according to sources. The individual stated that the accuser was a former Flipkart employee, while another person who was familiar with the situation stated that the woman never worked at the organisation.

"Bansal's decision to quit came after an independent investigation done on behalf of Flipkart and Walmart into an allegation of serious personal misconduct," the city-based e-commerce company and its parent American retail giant Walmart said in a joint statement.

Bansal, however, denied the allegation, the statement said.

"He (Bansal) denies the allegation. Nevertheless, we (Flipkart and Walmart) had a responsibility to ensure the investigation was deliberate and through," the companies said.

"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," Walmart said in a statement.

The investigation revealed lapses in Bansal's judgement, the statement added.

Bansal didn't immediately respond to an email seeking comment on the assault allegation. In an email sent out to employees shortly after Walmart announced his departure, Bansal said he would continue to hold his substantial stake in Flipkart and remain a member of its board.

The statement also added “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.”

In an e-mail to the company's staff, Bansal denied the allegations and claimed they left him "stunned".

"The allegations left me stunned and I deny them. The investigation, however, did bring to light lapses in judgment, particularly lack of transparency," he admitted.

He also said he had been considering stepping away from the executive post for a while, but wanted to continue for a few more months to continue through the transition after Walmart bought a majority stake in Flipkart in May.

"These have been challenging times for my family and me. I am concerned that this (allegation) 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 CEO," Bansal wrote.

He, however, will continue as a shareholder in the company and as a member of the Board of Directors, Bansal added.

The resignation was taken as an embarrassment for Walmart, one of Flipkarts most important international markets. Walmart has placed a huge bet on the unprofitable Flipkart unit, which the company has said will reduce earnings in coming years.

Walmart didn't detail the nature of the allegations. "This has been an unfortunate and challenging situation for Binny, his family and Flipkart," the e-commerce provider said a separate internal note in a NDTV report.

Going forward, Kalyan Krishnamurthy will continue to be the CEO of e-tailer Flipkart, which will include online fashion portals Myntra and Jabong, though they would operate separately.

A succession plan is being accelerated, said the company, as Bansal had been contemplating a transition for some time.

Though Binny and Sachin Bansal co-founded Flipkart in 2007, the latter left the company in May when Walmart bought a 77% equity stake in the company for a whopping $16 billion (₹1,16,256 crore).