Reebok India execs to meet police in Rs 8,700 cr fraud case

Reebok India has lodged an FIR with the Gurgaon Police against two of its former top executives for allegedly running a swindle that has lost the company about Rs 8,700 crore.

Reebok said its former managing director Subhinder Singh Prem and COO Vishnu Bhagat had "stolen" products by setting up "secret warehouses", fudged accounts and indulged in fictitious sales over the last five years. The FIR accuses the duo of breach of trust, cheating, foregery, account falsification and criminal conspiracy. If the claims are established true, this would be the second biggest corporate scandal after Satyam fraud.

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According to a CNBC-TV18 report, Reebok's India executives will meet with the police in the fraud case, which has already begun a formal probe led by DCP East M. Dayal. The Gurgaon Police will also seek expert help to dissect the multi-crore fraud.

Earlier this month, Adidas which owns Reebok had announced plans to close up to a third of the 1,000 franchise stores that Reebok has in the country, as part of a 70-million restructuring plan.

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Soon after this the German sports titan announced that it had called for Indian authorities to launch a criminal probe into the commercial irregularities at Reebok India.