After Satyam, Reebok India allegedly hit by fraud of Rs. 8700 crore
Another Indian company has allegedly come under the grasp of fraud as Reebok India lodged a FIR at a Gurgaon Police station. They are accusing that Subhinder Singh Prem (former managing director) and Vishnu Bhagat (COO) were indulged in fictitious sales and have stolen products totaling the fraud to Rs 8,700 crore ($ 233 million). Reebok India said that both of them set up secret warehouses and fudged accounts to steal money.
Reebok India lodged the FIR on Tuesday May 22 2012.
Addidas responded to the situation by an email saying "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."
It may come out as the 2nd biggest corporate scandal after Satyam who faced Rs 14,000 crore fraud by Ramalinga Raju.
Adidas appointed new management team in India in March when the alleged scam came into light and Singh and Bhagat were dismissed from the company.
Subhinder Singh was made Managing Director of Adidas India in the year 2011.
Reebok is a subsidiary of Adidas who bought the company in 2005 and is an athletic shoes, apparel, and accessories selling company.
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