Reebok India ex-MD, COO held on fraud charges
20 Sep 2012
Five former executives of sportswear manufacturer Reebok India, including managing director Subhinder Singh Prem and ex-chief operating officer Vishnu Bhagat, were arrested on Wednesday in connection with the alleged Rs870-crore ($160 million) fraud in the company.
They have been charged with creating fictitious sales and fudging company accounts.
"The SIT (special investigation team) has arrested five people accused of a role in the Rs870-crore Reebok fraud and will produce them in a city court on Thursday," K K Sindhu, Gurgaon Commissioner of Police, said.
"We will seek police remand. All these accomplices have not been cooperating with the police," Sandhu added.
The two former executives, who left the firm in March, have denied the charges.
The case came to light after Adidas, the parent company of Reebok, warned investors early this year that "commercial irregularities" at its Reebok unit in India could dent the company's profits.