Former Reebok Managing Director Subhinder Singh Prem, ex-COO Vishnu Bhagat and three other persons who were arrested for their role in the Rs 870-crore financial irregularity case at Reebok India, were today remanded to police custody.
“The Special Investigation Team had arrested five persons accused of a role in the Rs 870-crore Reebok fraud late Wednesday evening. They were produced in Court today and have been remanded to seven day police custody,” Maheshwar Dayal, DCP East, told Business Line .
On May 22, the Gurgaon police had lodged an FIR against Prem and Bhagat, whose services were terminated by the company.
Three former general managers Sanjay Mishra, Prashant Bhatnagar, and Surakshit Bhatt were arrested for fraud and criminal conspiracy.
The five were accused of siphoning off money along with generating fake bills and creating ghost distributors across the country for a period of five years.
The scam came to light when Reebok’s parent company, the German sports giant Adidas, found discrepancies in the annual accounts and filed a criminal complaint with the Gurgaon police.
In March, the company dismissed Managing Director Subhinder Singh and Chief Operating Officer Vishnu Bhagat and accused them of falsifying sales records and passing off genuine goods as defective products.