This has almost started to become a monthly occurrence now this year as yet another senior executive has left Flipkart (fourth such exit within 5 months). This time, Rajinder Sharma, the legal head of Flipkart resigned from his position after just 10 months of service, reported ET.
He had joined the firm in September last year. Before joining Flipkart in September, Sharma worked as legal head of the south and west Asian unit of Samsung Electronics. He has also worked at Reliance ADAG, JSW Group and Tata Group.
Flipkart has confirmed the news to the ET but did not give any specific details regarding the departure. Sharma, on the other hand, said,
The going has been good and Flipkart legal team won an international award as second best in Asia Pacific, adjudged by a jury of Global GCS; so not a right time for me to leave yet though.
He did not divulge any details about his future plans after Flipkart and said,
That’s work in progress but not formalised. Will be so finalised next week for sure as I am travelling for two days.
Interestingly, the legal head before Sharma, Srivals Kumar, also served the company for a short period of time spanning little over a year. Meanwhile, Chief Financial Officer Sanjay Baweja will head the legal division until Flipkart finds a successor to Sharma.
Notably, this exit follows other high-profile exits from the company this year. This includes the exit of Myntra founder and commerce platform head Mukesh Bansal, chief business officer Ankit Nagori and product head Punit Soni.
Possible legal troubles
This sudden exit of the legal head could perhaps prove more detrimental to Flipkart than other exits. This is due to the number of legal issues the company is facing at the moment. One of the primary issues is that of new FDI regulations which disallowed e-commerce companies to directly influence prices of products on marketplaces.
However, Flipkart recently concluded it major sale event of Myntra with heavy discounts. Even players like Amazon and Snapdeal have also resumed these sales. They have claimed that sellers are offering these so it is under law.
However, it remains to be seen if there is any legal enquiry into the same whatsoever. If it happens, the company may find it tough to deal without a regular legal head.
Another legal issue could be related to entry tax cases. The Indian e-commerce giant has filed petitions against multiple state governments for levying entry tax on ecommerce goods. Some of these could also go to Supreme court after state courts rule in favour of Flipkart like West bengal did.