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Last Updated : Nov 17, 2018 03:27 PM IST | Source: Moneycontrol.com

Binny Bansal refutes allegations of misconduct in letter to employees, says will remain on board of Flipkart  

Bansal had stayed on at Flipkart while his other co-founder Sachin Bansal left the company after Walmart acquired majority ownership in the web retailer.

Priyanka Sahay @priyankasahay

Denying the claims made by a complainant against him, Binny Bansal on November 13 said that while he is stepping down from his position of chairman and the group chief executive, he will continue to be a board member holding stake in the company.

"I will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors," he told employees in an email.

He also stressed upon the fact that he was "stunned" by the allegations.

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"These events relate to a claim of serious personal misconduct made against me, which was uncorroborated after a thorough investigation completed by an independent law firm. The allegations left me stunned and I strongly deny them," he said.

He has also mentioned that the earlier plan was to stick around with the company for a few more quarters after closing the Walmart deal.

However, his decision to step down was accelerated by "certain personal events that have taken in the recent past".

On May 13 earlier this year, global retail giant Walmart bought 77 per cent in Flipkart for $16 billion, as it made an elephant-footed entry into India's exploding e-commerce market.

Bansal also lauded Walmart as a great partner saying that "he was optimistic about the future together".

Following his exit, Kalyan Krishnamurthy will continue to be the CEO of Flipkart, which will now include Myntra and Jabong, continuing to operate as separate platforms within the Flipkart business. Ananth Narayanan will remain the CEO of Myntra and Jabong and will report into Krishnamurthy while Samir Nigam will continue to lead PhonePe as the CEO.

"I am convinced that the company is in great hands with our experienced leaders - Kalyan, Ananth and Sameer.  They have done an exceptional job running the businesses for many years now and with the support of Walmart that I have experienced, will continue to lead the company to even greater successes in the future," Bansal said.

Bansal resigned after an independent probe found him guilty of serious personal misconduct.

While Walmart did not specify the exact nature of the charges against Bansal, a top source told Moneycontrol that the development is related to a complaint from a female colleague a few months ago.

Here's the text of the letter:

Dear Flipkart Family,

Since co-founding Flipkart with modest resources in 2007, the journey we have embarked on together has been arduous and rewarding, culminating with the fantastic news of our partnership with Walmart earlier this year. They have been great partners and I am optimistic about our future together. 

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.

These events relate to a claim of serious personal misconduct made against me, which was uncorroborated after a thorough investigation completed by an independent law firm. 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.

I will continue to be a large shareholder in the company and will continue to serve as a member of the Board of Directors. 

I am convinced that the company is in great hands with our experienced leaders - Kalyan, Ananth and Sameer.  They have done an exceptional job running the businesses for many years now and with the support of Walmart that I have experienced, will continue to lead the company to even greater successes in the future. 

Thank you for all the goodwill that you’ve shown towards me over the years. I’m grateful to have had the opportunity to help get us to where we are today. I look forward to seeing Flipkart scale greater heights in the coming years.

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First Published on Nov 13, 2018 08:32 pm
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