NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » SFIO probes alleged irregularities at Reebok: Govt

SFIO probes alleged irregularities at Reebok: Govt

September 06, 2012 17:05 IST

ReebokThe Serious Fraud Investigation Office has started a probe into alleged irregularities at sports wear maker Reebok India, Parliament was informed on Thursday.

Minister of State for Corporate Affairs R P N Singh informed the Lok Sabha that the ministry has initiated an investigation into alleged irregularities at Reebok India.

"On the basis of media reports, this Ministry has ordered investigation into the affairs of Reebok India under section 235 of the Companies Act, 1956 on 29.05.2012, which is being conducted by the Serious Fraud Investigation Office of this ministry," Singh said in a written reply.

However, he said the Ministry has not received any specific complaint regarding

fraud in Reebok India Company.

Reebok India, in May, had filed an FIR, alleging that its former Managing Director Subhinder Singh Prem and chief operating officer Vishnu Bhagat were involved in a Rs 870-crore (Rs 8.7 billion) fraud by indulging in 'criminal conspiracy' and 'fraudulent practices' over a period of time.

Income Tax Department is also probing the alleged financial irregularities in Reebok India.

The company's German parent Adidas had previously said that the global sales of its Reebok brand declined by 26 per cent in the April-June quarter, mainly due to impact from Reebok India Company.

The group had also said it expected a hit of Euro70 million (about Rs 490 crore) in its global operating profit in 2012 on account of 'irregularities' in Reebok India.

© Copyright 2018 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.