Binny Bansal, chief executive of India's biggest online retailer, Flipkart, has resigned following an investigation into his conduct.
Flipkart and its owner, Walmart, launched the investigation after a complaint of "serious personal misconduct" was made against Mr Bansal.
The inquiry did not find evidence to back up the allegation, but did "reveal other lapses in judgement".
Walmart paid $16 billion earlier this year to take control of Flipkart, according to a BBC report Wednesday.
The companies did not give any further details about the allegation against Mr Bansal.
However, in a combined statement, they said he had shown "a lack of transparency" in his response to the situation.
In an email to staff, seen by the BBC Mr Bansal said: "The allegations left me stunned and I strongly deny them."
"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."
Transition time
Mr Bansal co-founded Flipkart in 2007 with Sachin Bansal who, despite sharing the same surname, is not related.
The firm, which sells everything from books to clothing and food, is now one of the biggest online retail players in India.
This year, Walmart announced it would take a majority stake in the company, drawn by India's fast-growing e-commerce market, which is expected to grow from its current size of $35 billion to $100 billion by 2022.