Millennium Post

Govt refers Reebok case to SFIO

The ministry of corporate affairs has referred to the Serious Fraud Investigation Office (SFIO) the case of Rs 870 crore deceit in Reebok India allegedly by its two former top executives. 'Prima facie, we have found something wrong in their (Reebok) books.

The matter has now been referred to the SFIO for further investigation,' corporate affairs minister Veerappa Moily said on the sidelines of an Assocham event on Tuesday.

The move followed a non-invasive scrutiny carried out by the Registrar of Companies, Delhi, which submitted the report to the ministry on Monday, he said.

Last week, the ministry had ordered an enquiry into the books of accounts of Reebok's Indian arm over complaints of an alleged Rs 870 crore fraud.

The enquiry was ordered on the basis of a complaint from an investor. Reebok India had filed an FIR with the Gurgaon police last week alleging its former MD Subhinder Singh Prem and COO Vishnu Bhagat of Rs 870 crore fraud by indulging in 'criminal conspiracy' and 'fraudulent' practices over a period of time.

While both Prem and Bhagat had denied the allegations, a local court on Saturday had rejected their anticipatory bail.
Next Story
Share it