KPMG officials grilled in Reebok case
The economic offences wing (EOW) of the Gurgaon police department investigating the Rs 870-crore Reebok fraud on Saturday questioned officials of KPMG India. HT reports.gurgaon Updated: Jun 11, 2012 01:14 IST
The economic offences wing (EOW) of the Gurgaon police department investigating the Rs 870-crore Reebok fraud on Saturday questioned officials of KPMG India.
The audit firm had been hired by Reebok in 2010 to internally investigate irregularities at Reebok India.
Subhinder Singh Prem, the former managing director (MD), and Vishnu Bhagat, chief operating officer (COO), of Reebok India, are still absconding. Both were booked on May 21 by the Gurgaon police for allegedly fudging the company accounts and operating secret warehouses causing losses to the global sports goods firm. A bail petition by the accused has been turned down by an additional district and sessions judge here.
DCP Crime Maheshwar Dayal said, "The KPMG team did not cooperate despite repeated reminders to join the investigation. On Saturday, they obliged after summons were issued. We grilled them for about three hours. Since they were part of an internal investigation, they were aware of the loopholes. We will question them again on Tuesday."
KPMG officials, however, could not be reached for their comments.
On June 4, the city police carried out raids at four warehouses in Delhi which were allegedly used as secret godowns. Shoes, sunglasses and apparels worth crores were seized.
First Published: Jun 11, 2012 01:13 IST