Bansal, who still holds 4 percent of Flipkart and a board seat, has kept a low profile since the sexual harassment claim and ouster.
The firm owner Walmart Inc had announced on Tuesday last that Bansal had resigned as the Group Chief Executive Officer after an independent probe into allegations of "serious personal misconduct".
Following resignation of CEO Binny Bansal, there have been hierarchical changes to the e-commerce company which bought Myntra in May 2014.
Walmart, who bought the Indian retail giant in May this year, issued a statement about Binny's resignation on Tuesday.
The joint statement issued by Walmart and Flipkart did not mention the nature of the misconduct or what was the complaint against the co-founder of Flipkart.
Flipkart Chief Executive Officer Kalyan Krishnamurthy is one of the leading candidates for the position, the newspaper said, citing sources.
The Flipkart Group includes fashion portals Myntra-Jabong, payments unit PhonePe and logistics firm Ekart.