Reebok case referred to SFIO

The ministry of corporate affairs has asked the Serious Fraud Investigation Office (SFIO) to look into the R870-crore Reebok fraud case involving its former managing director Subhinder Singh Prem and former chief operating officer Vishnu Bhagat.

The ministry of corporate affairs has asked the Serious Fraud Investigation Office (SFIO) to look into the Rs. 870-crore Reebok fraud case involving its former managing director Subhinder Singh Prem and former chief operating officer Vishnu Bhagat.

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Corporate affairs minister M Veerappa Moily said "something wrong" has been found in the books of Reebok India. The Registrar of Companies made a non-invasive scrutiny of the company’s books, and its report was submitted to the ministry on Monday, he said.

“Prima facie, we have found something wrong in their books. The matter has been referred to SFIO for further investigation,” Moily told reporters on the sidelines of an Assocham event.

Following an investor’s complaint, the ministry had last week ordered an enquiry into the books of accounts of sportswear major. Reebok India has already filed an FIR with Gurgaon police charging Prem and Bhagat, who have been sacked, of “criminal conspiracy” and “fraudulent” practices over a period of time.

Prem has denied the charges.