Binny Bansal, the Cofounder, Chairman, Group CEO of Flipkart resigned on 13th Nov 2018 amidst a flurry of conjecture over the allegations of improper conduct. His departure comes less than 6 months after Walmart Inc acquired majority ownership in Flipkart.
The allegations which led to the dramatic and unexpected resignation of Binny Bansal were initially made in 2016 by a former woman employee of Flipkart, said two sources familiar with the development. However, the charges could not be substantiated then, according to these sources.
At that time, Binny had just taken over as group CEO from cofounder Sachin Bansal, who had become executive chairman. In July 2018, the former employee approached Walmart Global which had announced acquisition of a 77% stake in Flipkart in May of that year.
The people quoted said she had written to Walmart CEO Doug McMillon alleging misconduct. Walmart and Flipkart then roped in an international law firm which looked into the matter, even as Walmart closed the Flipkart deal by mid-August.
The complainant worked in Flipkart and left the company in 2012, according to the sources. In 2016, she started an event management company and again came into contact with Binny Bansal, according to the sources cited. While investigating the issue, Walmart is said to have been irked by the fact that the matter was not disclosed by Binny Bansal during acquisition negotiations.
Further, the phrases “other lapses of judgement” and the “lack of transparency” in Walmart’s statement refer to the manner in which Binny Bansal dealt with the matter post 2016, when the initial allegation was made. In an email to employees, Binny Bansal, while strongly denying the allegations, acknowledged that the investigation “did bring to light lapses in judgement”.
At that time, Binny had just taken over as group CEO from cofounder Sachin Bansal, who had become executive chairman. In July 2018, the former employee approached Walmart Global which had announced acquisition of a 77% stake in Flipkart in May of that year.
The people quoted said she had written to Walmart CEO Doug McMillon alleging misconduct. Walmart and Flipkart then roped in an international law firm which looked into the matter, even as Walmart closed the Flipkart deal by mid-August.
The complainant worked in Flipkart and left the company in 2012, according to the sources. In 2016, she started an event management company and again came into contact with Binny Bansal, according to the sources cited. While investigating the issue, Walmart is said to have been irked by the fact that the matter was not disclosed by Binny Bansal during acquisition negotiations.
Further, the phrases “other lapses of judgement” and the “lack of transparency” in Walmart’s statement refer to the manner in which Binny Bansal dealt with the matter post 2016, when the initial allegation was made. In an email to employees, Binny Bansal, while strongly denying the allegations, acknowledged that the investigation “did bring to light lapses in judgement”.
Source:
TheHinduBusinessline.com/info-tech/binny-bansals-email-to-flipkart-employees/article25486976.ece
Economictimes.indiatimes.com/industry/services/retail/complaint-first-made-in-2016-employee-left-flipkart-in-2012/articleshow/66613338.cms
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