Reebok India's MD, COO booked for Rs 8,700 cr fraud
Gurgaon police have booked the former MD and COO of the India chapter of global sports goods firm Reebok on charges of forgery, cheating and criminal breach of trust and causing a loss to the tune of over Rs. 8,700 crore. Sanjeev K Ahuja and Leena Dhankhar report.delhi Updated: May 23, 2012 08:53 IST
Gurgaon police have booked the former managing director (MD) and chief operating operator (COO) of the India chapter of global sports goods firm Reebok on charges of forgery, cheating and criminal breach of trust and causing a loss to the tune of over Rs. 8,700 crore.
The FIR, registered on Sunday evening, charged Subhinder Singh Prem, former MD, and COO Vishnu Bhagat of misappropriating funds during their tenure. No arrests were made till Monday evening. Their employment contract was terminated on March 26, 2012.
The duo, employed with the company for 16 years, has been accused of operating four secret warehouses in Delhi to keep clandestinely diverted and stolen stocks. The company claimed that this fraudulent act had put at risk the jobs of around 40,000 people involved directly and indirectly in the business of Reebok and Adidas group in India.
The complaint stated that in January the company had identified fraudulent activities and conducted an internal inquiry. It was found the duo had been indulging in fraudulent activities over several years and was involved in systematically cheating and defrauding the company of hundreds of crores of rupees. The company also claimed that Reebok and Adidas Group had suffered irreparable damage to its reputation.
The FIR was registered under section 406/408 (Criminal breach of trust)/418 (cheating with knowledge/467 (forgery of valuable security)/468 (forgery for cheating) /477A (falsification of accounts) and 120B (criminal conspiracy).
Reebok legal manager refused to comment on the issue.