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E&Y forensic analysis confirms Reebok fraud

By FashionUnited

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Reebok India’s sacked managing director Subhinder Singh

Prem and former COO Vishnu Bhagat had fudged company accounts books by double discounting and preparing fake invoices, said Ernst & Young (E&Y) in the forensic analysis report on the company’s accounts. The E&Y report would be used as an important forensic evidence to investigate the matter. Meanwhile, Prem and Bhagat, with 10 other accused, are in judicial custody till October 16. The police are expected to question them on the basis of the report.

On September 26, the police arrested Prem and Bhagat for their alleged involvement in the Rs 870 crores fraud. Three more people — Sanjay Mishra, Prashant Bhatnagar and Surakshit Bhatt — were arrested on the same day on charges of helping the two accused carry out the alleged fraud. The next day, the five were sent to police remand for seven days, later extended by six more days. The Gurgaon Police made seven more arrests — Surakshit Bhatt, Nikhil Upadhay, Anand Aggarwal, Lalit Marwah, Vikas Uppal, Manish Marwah, and Kapil Aggarwal — who were managers at the company.

According to sources, the judicial custody for all the 12 arrested is likely to be extended by at least two more weeks, none of the two have so far sought for bail in the case but are said to be considering legal options. The Serious Fraud Investigation Office (SFIO) probing the alleged irregularities at Reebok India is likely to submit its report by November as the sportswear maker is still finalising its accounts. SFIO, which is under the corporate affairs ministry, is looking at the financial deals of the company over a period of time.
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