Wednesday, 30 May 2012

Reebok India fraud referred to Serious Fraud Investigation Office

TNN | May 30, 2012, 05.39AM IST

NEW DELHI: The government has referred the fraud at Reebok India to the Serious Fraud Investigation Office (SFIO) after finding anomalies in the company's books. Corporate affairs minister Veerappa Moily said "something wrong" had been found in books of Reebok India, which has accused two of its former top executives for a Rs 870-crore fraud.

He said the step was taken after a non-invasive scrutiny of the books of accounts of the sportswear maker.
The report of the non-invasive scrutiny, carried out by the Registrar of Companies (RoC), Delhi, was submitted to the ministry on Monday. The corporate affairs ministry had last week ordered an enquiry into the books of accounts of Reebok India on the basis of a complaint from an investor.

Reebok India had on May 22 lodged a first information report (FIR) with the Gurgaon Police, alleging that its former MD Subhinder Singh Prem and ex-COO Vishnu Bhagat had "stolen" products by setting up "secret warehouses" , fudged accounts and indulged in fictitious sales to cause a Rs 870 crore dent to the company. Prem and Bhagat denied allegations and filed for anticipatory bail, which was rejected.

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