‘Sacked Reebok executives own 29 properties’, says E&Y


‘Sacked Reebok executives own 29 properties’, says E&Y

8 Nov 2012

Subhinder Singh Prem and Vishnu Bhagat, the Reebok

India executives fired for alleged involvement in a Rs 870 crores fraud, between them own 29 residential and commercial properties in several Indian cities, claims a forensic audit by German arm of Ernst & Young for the sports goods firm’s parent. However, the lawyer representing Singh and Bhagat , the former CEO and COO of the company, respectively, has refuted the findings, saying Reebok had commissioned Ernst & Young to do the report for an ‘astronomical sum’ of Rs 130 crores with a view to influence the investigations and counter an earlier report by KPMG that absolved his clients of any wrongdoing.

The Ernst & Young report, Prem and Bhagat separately own properties ranging from premium residential apartments in Gurgaon in projects such as The Palms, Habitat Tower, M3M Golf Estate and Deerwood Chase to commercial properties in Delhi. The report, dated October 9, also said Prem and Bhagat have received Rs 7.82 crores from unidentified sources.

The two executives were sacked after Adidas allegedly found out financial irregularities that caused a loss of Rs 870 crores. It followed this up with a police complaint. The Gurgaon Police arrested Prem and Bhagat along with three others in September on charges of fake sale, maintaining secret warehouses, unauthorised franchise referral programme and overstating receivables from customers.

The Reebok scam is being probed by multiple agencies including the Income Tax department under the finance ministry, the Serious Fraud Investigation Office under the corporate affairs ministry, and the economic offences wing of the Gurgaon Police.