Reebok fraud: Accused invested in prime properties too

Reebok India' sacked managing director Subhinder Singh Prem and former COO Vishnu Bhagat had indulged in fudging of accounts book and preparing fake invoice, but the duo also own 29 premium residential and commercial properties, if the forensic audit by Ernst and Young is to be believed.

A report in the Economic Times, quoting the Ernst & Young report, says Prem and Bhagat separately own properties ranging from premium residential apartments in Gurgaon in projects such as The Palms, Habitat Tower, M3M Golf Estate and Deerwood Chase to commercial properties in Delhi, as well as plush properties in Faridabad, Mohali and Bangalore.

[caption id="attachment_516145" align="alignleft" width="380"] Reebok India's sacked managing director Subhinder Singh Prem and former COO Vishnu Bhagat had indulged in fudging of accounts books, double discounting and preparing fake invoices, said Ernst & Young[/caption]

The lawyer, representing the duo who were sacked after Adidas allegedly unearthing financial irregularities that caused a loss of Rs 870 crore, has rejected the claim that his clients own several properties.

Adidas AG Germany had hired E&Y in June for performing a forensic review on allegations mentioned in the FIR against Prem and Bhagat, after the Gurgaon police booked the duo on May 21.

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The Enforcement Directorate too has begun a money laundering probe into the alleged corporate fraud.

Earlier, the Income Tax Department under finance ministry, the Serious Fraud Investigation Office (SFIO) under Corporate Affairs Ministry and the economic offences wing of the Gurgaon police had probed the firm and its officials.