Reebok India’s ex-MD,COO among 5 arrested

The Gurgaon police on Wednesday arrested the sacked managing director of Reebok India Subhinder Singh Prem,former COO Vishnu Bhagat

Written by Express News Service | Gurgaon | Published:September 20, 2012 1:06 am

The Gurgaon police on Wednesday arrested the sacked managing director of Reebok India Subhinder Singh Prem,former COO Vishnu Bhagat and three others for their alleged involvement in a close to Rs 700 crore fraud in the company.

Confirming that Prem,Bhagat along with the three others — Sanjiv Mishra,Prashant Bhatnagar and Surakshit Bhatt — have been arrested,sector 40 police station SHO Vikas Kaushik said,“We are investigating the matter and will get further details after interrogating them.”

The complaint of the alleged fraud was lodged by Shahin Padath who is the director (finance) of Reebok India. According to the FIR,hundreds of crores of rupees were siphoned off by Prem and Bhagat through fraudulent means.

The FIR also states that the duo had “stolen” products by setting up “secret warehouses”,fudged accounts and indulged in fictitious sales.

The police had then constituted a special investigation team (SIT) to probe into the issue. Padath,in the complaint,had alleged that the products were fictitiously diverted to warehouses set up by the duo and products worth more than Rs 100 crore were not delivered. The FIR mentions that Reebok — which was bought by Adidas in 2005 — has suffered irreparable damage to the reputation world over.

According to a PTI report,when the alleged scam came to light in March 2012,Singh,who had been made the managing director of Adidas India last year as a part of an integration of the businesses of both Adidas and Reebok brands,was dismissed from the company. Bhatt’s services were terminated too.

The news agency report quoted assistant commissioner of police Bhupinder Singh,who heads the

special investigation team probing the case,as saying that the five would be produced in court on Thursday, where “we will seek their custody”.

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