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CNN reports that Binny Bansal, co-founder and CEO of Flipkart, the Indian online retailer in which Walmart made a $16 billion investment earlier this year, taking a 77 percent stake in the company, has resigned from the company, “following an independent investigation into allegations of ‘serious personal misconduct’.”

In a statement, Walmart said that “while the investigation did not find evidence to corroborate the complainant's assertions against Binny, it did reveal other lapses in judgement, particularly a lack of transparency, related to how Binny responded to the situation … Binny has been an important part of Flipkart since co-founding the company, but recent events risked becoming a distraction.”

The move comes shortly after Walmart’s announcement that the Flipkart acquisition “would shave about $740 million off its quarterly profit.”

Bloomberg writes that “The resignation is another blow for Walmart in India, where Flipkart sales have plateaued, several other key executives have quit and rival Inc. is making a big push. Earlier this year, a Morgan Stanley fund marked down Flipkart’s value from $15 billion to $11 billion.”
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