Both accused had been behind bars since September last year, when they were arrested by the Gurgaon police.
The case came up for hearing before the court headed by justice Jitendra Chauhan on Wednesday.Appearing for the petitioners, advocate Jasjit Singh Bedi argued that they had been behind bars for the past 10 months and no money had been recovered from them.
He further argued that the so-called fraud was not of Rs. 870 crore as claimed, but at the maximum of Rs. 11.2 crore.
Bedi submitted that it was not a criminal fraud but a business loss. The court was informed that now there was no necessity to keep the accused behind bars as it would not serve any purpose.
On May 21, 2012, Reebok had filed a complaint with the Gurgaon police, alleging that Prem and Bhagat diverted company products and kept them in secret warehouses, resulting in a huge loss to the company.