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SFIO may question Reebok officials in Rs 870-cr fraud case

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Press Trust Of India New Delhi
Last Updated : Jan 24 2013 | 1:49 AM IST

Corporate fraud probe body, the Serious Fraud Investigation Office (SFIO) has started scrutinising documents relating to the alleged Rs 870-crore fraud at Reebok India and may soon take a call on questioning senior officials of the sportswear maker.

“We are still studying various documents relating to the fraud after which we will begin interrogating seniors officials of Reebok India and also the two accused,” a source said.

The documents, sources said, included annual reports and the findings of the Registrar of Companies.

The new director of SFIO, they said, was being briefed about the case and would soon decide on summoning the officials of the company.

When asked if it was true that the amount quoted by Reebok India in its first information report (FIR) was not real, an official said, “It is difficult to ascertain, at this juncture, what exactly the fraud size is.”

Last month, Adidas-owned Reebok India had filed an FIR, alleging that its former managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat had been involved in a Rs 870-crore fraud by indulging in “criminal conspiracy” and “fraudulent” practices over a period of time.

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Both the executives, however, had denied the allegations. Following this, the Ministry of Corporate Affairs (MCA) had ordered a scrutiny of the books of accounts of Reebok India by the Registrar of Companies.

Later, the case was referred to SFIO, the investigation wing of MCA, and was given four months time to complete the probe. The income tax (I-T) department also launched a probe into the finances of Reebok India.

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First Published: Jun 11 2012 | 12:21 AM IST

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