The Rs 870-crore alleged fraud at branded sportswear manufacturer Reebok India, owned by Germany's Adidas, will be probed by the Serious Fraud Investigation Office (SFIO).
The Corporate Affairs Minister, Mr Veerappa Moily, on Tuesday confirmed that the Reebok India case had been referred to the SFIO, which is a multidisciplinary organisation set up to investigate serious financial frauds.
This follows a non-invasive scrutiny of the books of accounts of Reebok India by the Registrar of Companies, Delhi.
“Prima-facie, we have found something wrong in their (Reebok) books. The matter has now been referred to the SFIO for further investigation,” Mr Moily told reporters on the sidelines of an Assocham event here on Tuesday.
Reebok India had alleged Rs 870 crore fraud by its former India Managing Director, Mr Subhinder Singh Prem, and former Chief Operating Officer, Mr Vishnu Bhagat. This alleged fraud is being billed as the most high-profile corporate scandal in India since 2009 when the Satyam Computers' scam came to light.
In a criminal complaint lodged with the Gurgaon police, Reebok India alleged that the two former officials stored products, set up secret warehouses, fudged account books and also engaged in fictitious sales for several years.
Last week, the Corporate Affairs Ministry had ordered an enquiry into the books of accounts of Reebok India following a complaint.
The Income-Tax Department has already launched a probe on Reebok India and has begun issuing notices to its executives.
While both Mr Prem and Mr Bhagat have denied the allegations, a local court had on Saturday rejected their application for anticipatory bail.