Reebok India has filed a First Information Report (FIR) at a police station in Gurgaon on Monday alleging a loss of Rs 870 crores caused to the company due to illegal practices of its parent company Adidas’ former Managing Director Subhinder Singh Prem and former Chief Operating Officer Vishnu Bhagat. The duo had been working with the company for more than 16 years before being sacked in March, 2012.
The FIR says that the fraudulent activities of Prem and Bhagat were first identified in January and were internally investigated by two directors of the company for three months. The investigation revealed that both “had been indulging in such fraudulent activities over several years and had engaged in a grave criminal conspiracy to systematically cheat and defraud the company of hundreds of crores of rupees”.
The report further alleges that these two former senior officers maintained four illegal warehouses in Delhi and diverted the products of the company to these warehouses for personal gains. The FIR details out the modus operandi of the fraud and how around Rs 114 crores were collected through unauthorised franchise referral programme. The money was collected despite instructions from the headquarters of Adidas to not to expand the number of stores
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