Adidas, which owns Reebok, had to take euro 211 million hit on account of the fraud at Reebok India
The company, which is repositioning Reebok as a fitness brand, however, did not disclose the value of the contract.
In a major expansion into sportswear and lifestyle wear segment, the Kumar Mangalam Birla-led Aditya Birla Fashion & Retail has signed a long-term licensing agreement with Authentic Brand Group of New York, which has the marketing and branding rights of Reebok, to run the operations of the global sportswear, athletic and lifestyle major in the country and ASEAN markets. The new agreement between the largest domestic multi-brand fashion retailer and Authentic Brand is an extension of their existing relationship as ABFRL already markets and sells some ABG brands like Forever 21. The agreement follows the global transfer of ownership of the Reebok brand from Adidas to ABG, which is expected to close in the first quarter of 2022.
Last year, Reebok India had filed an FIR alleging Rs 870 crore fraud by its former MD.
Sources say bills were inflated by the company and not recorded correctly.
Company refuses to comment, says 'matters internal to organisation'
Executives caused loss of Rs 11 cr, according to police SIT.
Traditionally carved from top-quality willow, famous bat-makers, source the bulk of their willow wood from Kashmir.
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.
According to SFIO, the modus operandi of the Reebok fraud involved filing fictitious invoices to show inflated sales, recording fictitious sales by raising prices of goods sold.
Reebok India on Friday said it has set a Rs 250 crore (Rs 2.5 billion) sales turnover target for the current calender year, up by 50 per cent over last year, and plans to open another 20 exclusive showrooms across the country.
The German sportswear maker has brought Haskell, who played a key role in writing the growth story for Adidas in China, to give Reebok's India business a 'fresh start' after the alleged Rs 870-crore (Rs 8.7-billion) fraud by former managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat.
The move is significant, as this may prompt investigating agencies to take a look at the fresh accounting statements to be filed by the company to RoC, before taking a final call.
The issue relates to alleged Rs 870-crore (Rs 8.7-billion) financial fraud at the company last year.
The special investigation team of Gurgaon police, which is probing the case, has said that it has found four illegal warehouses, whose existence was not disclosed to auditors, tax authorities or to the Adidas management in Germany.
Corporate Affairs Secretary Naved Masood said SFIO is finalising the report on Reebok.
Says company yet to file audited accounts, without which it can't proceed.
Reebok India has signed on the fittest Bollywood star as the new face for the brand.
The Institute of Chartered Accountants of India (ICAI) has initiated an inquiry against former Reebok India chief operating officer Vishnu Bhagat, one of the accused in the alleged Rs 870-crore fraud in the company, a senior ICAI official said.
After the success of bringing businesses to WhatsApp, Meta - its parent - is now introducing ads and subscriptions to Status and Channels under the Updates tab of the messaging app, the company said on Monday. This move will further push its monetisation efforts on WhatsApp.
E&Y has given the report to the Gurgaon police.
Decision on probing the role of auditors will be taken after initial inquiry
SFIO official refuses to reveal the nature of additional charges found during investigation.
The ED is also probing alleged violations of foreign exchange rules by the company since 2006.
The investigative arm of corporate affairs ministry says there may also be involvement of others in alleged fraud, besides top executives.
The Enforcement Directorate (ED) is proposing a penalty on German sportswear giant Adidas' subsidiary Reebok India for alleged violations of the Foreign Exchange Management Act (Fema).
They have been arrested for their alleged involvement in Rs 870-crore fraud.
The Institute of Chartered Accountants of India had issued show-cause notice to Bhagat, who sought time till March 31 to give his response.
The I-T department is now checking the account books and financial documents of select Reebok dealers in India, to whom it is issuing notices.
Taiwanese footwear major Hong Fu Industrial Group - a supplier to Nike, Converse, Vans, UGG, Puma, Adidas, Reebok, HOKA, Under Armour, and ON (a Swiss sportswear brand) -marked its India entry on Monday, with the ground breaking ceremony of the Rs 1,500-crore footwear manufacturing facility at the SIPCOT Industrial Park in Panapakkam, nearly 85 kms from Chennai.
Erick Haskell takes over from Claus Heckerott.
The state is in the process of grooming a supplier ecosystem, for which India is almost entirely dependent on imports.
The franchisees from the National Capital Region were protesting against the new terms proposed by the German sports goods major for operating stores in India.
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