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Rediff.com  » Business » SFIO finalising report into alleged Reebok fraud

SFIO finalising report into alleged Reebok fraud

March 18, 2013 17:51 IST

FraudThe Serious Fraud Investigation Officer is finalising its report into the alleged financial irregularities at sportswear maker Reebok India, a senior government official said on Monday.

Corporate Affairs Secretary Naved Masood said SFIO is finalising the report on Reebok.

"SFIO is looking at the case more from the technical violations (view) and observance of the corporate law view point. . . They are finalising the report," Masood told reporters in Mumbai.

The case relates to alleged financial irregularities at the sportswear maker. Reebok India in its FIR filed last year had alleged financial fraud to the tune of Rs 870 crore (Rs 8.7 billion) at the company.

Asked about the delay in finalising the SFIO report, Masood said, "it is not a question of looking at the delay but looking at all possible issues so that the final outcome is watertight".

SFIO comes under the Corporate Affairs Ministry.

Last year, Reebok India had filed an FIR alleging fraud by its former Managing Director Subhinder Singh Prem and Vishnu Bhagat. Both of them have denied the charges.

Earlier this month, German sportswear giant Adidas had said its balance sheet for 2011 is negatively impacted by euro 153 million (over Rs 1,090 crore) because of 'commercial irregularities' at its arm Reebok India Co.

The company had in April last year stated that the estimated maximum negative impact due to the alleged fraud by its two top executives at Reebok India, could be up to a pre-tax amount of Euro125 million.

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