Court files charges against ex-Reebok India MD, CFO


Court files charges against ex-Reebok India MD, CFO

11 Jul 2013

A local court has framed charges against all the accused in

the alleged Reebok India scam. Former senior officials, including Managing Director Subhinder Singh Prem and Chief Financial Officer Vishnu Bhagat, have been made main accused in the case. Three other officials, including general manager Prashant Bhatnagar, Sanjeev Mishra and Surakshit Bhatt have been made co-accused. The court has also made six others part of the criminal conspiracy.

In May last year, Reebok had lodged an FIR with Gurgaon Police alleging that Prem and Bhagat had stolen products by setting up secret warehouses and fudged accounts, causing huge loss to the Indian unit. At present, all accused except Prem are out on bail. After framing of charges, the court will hear evidence in the case. In November, the Gurgaon Police had filed charges estimating the total loss incurred by Reebok India on account of the alleged financial irregularities at Rs 11.3 crores as against Rs 870 crores mentioned in the FIR.

Meanwhile, reviving its business in India after being hit by fraud allegations, Reebok is planning major expansion in the country. It will open 100 'fit-hub' concept stores by 2014, 50 of them this year. Most of these will be located in metros with some in Tier II cities.