SFIO accuses Reebok of delaying probe


SFIO accuses Reebok of delaying probe

28 Jan 2013

Officials of the Serious Fraud Investigation Office

(SFIO) have said Reebok India was causing a delay in its probe against two top former Reebok employees for alleged financial irregularities and fraud. While SFIO is almost through with the probe, it needs the audited accounts from the company for 2011 to substantiate its claims in the investigation report.

SFIO, the corporate fraud investigative wing of the Ministry of Corporate Affairs (MCA), started a probe into the Reebok India case in May 2012 and was expected to give its report by October 2012. It says that once the audited accounts from the company come in, it will take them another 15-20 days to finalise and formulate the report.

Adidas, Reebok’s German parent, maintains that it has extended all cooperation to the authorities investigating the case and will continue to do so. Erick Haskell, the recently-appointed head of India operations said, “There are tremendous volumes of accounts, which is taking time. We will submit the audited accounts to RoC as soon as possible.”

The Gurgaon Police had filed a charge sheet in the case in November 2012 which stated, the total loss incurred by Reebok India on account of alleged financial irregularities is merely Rs 11.30 crores — a small amount, compared to the Rs 870 crores alleged by the company in its first information report to the police.