New Delhi:Latest developments in the Reebok India financial irregularities case suggest that the former Reebok India chief Shubhinder Singh Prem has been booked for fraud by the company’s financial director for alleged financial and commercial irregularities which led to a loss of Rs 1,300 crore to the company.
On Tuesday, an FIR was lodged against Prem and Reebok India’s former chief operating officer Vishnu Bhat for allegedly siphoning off funds from the company by creating ghost distributors across the country and generating forged bills over the last five years.
The company’s financial director, Shahim Padath, later lodged a formal complaint against the duo.
The economic cell of Gurgaon police conducted a probe and found that Singh and Bhat had allegedly rented four warehouses without informing their seniors and used them to store goods which they claimed were being supplied to genuine dealers.
They also allegedly siphoned off goods to ghost companies and distributors across the country, claiming they were defective pieces.
On the complaint of Shahim, stating that the duo had caused a loss of Rs 1,300 crore to the company through these irregularities, an FIR was lodged against them, police said.
Prem had sued his former employers to the tune of Rs. 15 crore over charges of defamation and abrupt termination of services earlier this month.
German sportswear company Adidas AG which had earlier filed a criminal complaint with the Indian law enforcing authorities seeking a probe into the alleged financial irregularities in its Indian arm Reebok India in an emailed statement said:
“We are given to understand that our criminal complaint has been registered for investigation by the Indian law enforcement authorities. Please understand that we cannot provide any other details since the matter now rests with the Indian law enforcement authorities. We shall continue to cooperate with the authorities in their investigation of the matter.”