Reebok fraud case: Two top ex-employees booked

The two top executives are booked for allegedly siphoning off Reebok's money by creating ghost distributors across the country and generating forged bills over the last five years

Gurgaon: The Gurgaon Police has formed a special investigation team to look into the alleged Rs870- crore fraud case filed by Reebok India Co against its former MD Subhinder Singh Prem and COO Vishnu Bhagat.

"We have constituted a special investigation team to be headed by Assistant Commissioner of Police Rajesh Phogat for the purpose," Maheshwar Dayal, DCP (East), Gurgaon, told PTI.

He also clarified that the company in its original complaint had stated that the hit due to alleged fraudulent practice of its two former top executives was "Rs870 crore" and the amount mentioned in the FIR was a typographical error.

As per the FIR filed yesterday, Reebok India alleged Prem and Bhagat had indulged in "criminal conspiracy" and "fraudulent" practices over a period of time that resulted in Adidas group taking a "total hit of approximately Rs8,700 crore in the books".

Reebok India is a part of the Adidas group.

In the FIR, Reebok India further said it will also incur a restructuring cost of Rs 487 crore to remedy the consequences of the "criminal and fraudulent" acts of its formers top executives.

Asked about the progress of the case, Dayal said: "Now, we have asked the complainant to give us documents and other evidence to prove that a scam of this magnitude has happened in the company."

When contacted, Adidas Group said: "We are given to understand that our criminal complaint has been registered for investigation by the Indian law enforcement authorities...We shall continue to cooperate with the authorities in their investigation of the matter.



a v moorthi besides TIHAR

4 years ago

What were the auditors of Reebok doing during last 5 years ( ML should write about them also by giving them a chance - after all they would be collecting a fat fee for their assignment). This also shows very poorly about the caliber of Top Management of Reebok in US who never knew the happening in Reebok India for over 5 years and icing of the cake was Reebok reported in FIR initially as Rs 8,700 crores instead of Rs 870 crores as per latest FIR, hope tomorrow they don't claim it is just Rs 870/- . This also shows the caliber of the investment Bankers who could palm of a dud like this Reebok to Adidas

Bombay HC tells Pollution Board to furnish details of H-acid manufacturing units

The High Court also asked NEERI to inform whether it would be safe for any industry manufacturing H-Acid to transport its effluent from the factory at Mahad to Taloja, which is about 135kms

Mumbai: Hearing a petition against transportation of effluents from industries manufacturing H-acid, the Bombay High Court has asked Maharashtra Pollution Control Board (MPCB) to specify particulars about such industrial units and details of sale price of their products, reports PTI.

The MPCB has also been asked to furnish information whether such industries are located within the limits of Maharashtra Industrial Development Corporation (MIDC) or outside.

The direction was given recently by Chief Justice Mohit Shah and Justice NM Jamdar on a petition filed by Nicholas Almedia, challenging transportation of effluents from an industrial unit in Mahad town of Raigad district to Taloja in Navi Mumbai.

The court also asked MPCB to ascertain from Mumbai Waste Management, Taloja, as to whether it receives effluents from the industries manufacturing H-Acid for treatment or for disposal by land fill method, costs of such treatment/disposal and cost of transportation of effluent from the industrial unit in Mahad to Taloja.

The judges further asked the industrial unit in Mahad to place on record the cost analysis of manufacturing H-Acid prior to the date of closure and the price at which the product was being sold.

Adjourning the petition to 11th June, the court also asked National Environmental Engineering Research Institute (NEERI) to inform whether it would be safe for any industry manufacturing H-Acid to transport its effluent from the factory at Mahad to Taloja, which is about 135kms.


BCCI stops payment to Azad who remains defiant

Azad, who is to get Rs35 lakh under the BCCI one-time benefit payment scheme, said he will continue protesting against the IPL and the Board

New Delhi: The Board Of Control For Cricket In India (BCCI) may have dropped his name from the list of former cricketers who will get one-time benefit payment but a defiant Kirti Azad on Wednesday said that he will not stop from raising his voice against the Indian Premier League (IPL) and the Board, reports PTI.

According to sources, the BCCI scratched the name of Azad from the list of beneficiaries for the one-time payment following his fast at the Feroze Shah Kotla ground in protest against the alleged financial irregularities in the IPL. There is no official word from the BCCI yet on this issue.

Azad said he has not been contacted by the BCCI on whether his name has been removed from the list. "I have not received any intimation from the BCCI so far. Neither has anyone contacted me," he told PTI.

Asked if he would accept the one-time payment if the Board decides to give it to him, Azad said, "The question of acceptance or refusal of the payment arises only when they get in touch me.

"But if they think that they can stop me from raising my voice by doing that, then they are wrong," said Azad, one of the members of the 1983 World Cup winning team and now a Bharatiya Janata Party Member of Parliament.

Azad, who is to get Rs35 lakh under the BCCI scheme, said he will continue protesting against the IPL and the Board.

"The skeletons of IPL have been coming out in the open and I will continue protesting whenever I see any kind of wrongdoings," he said.

Azad was non-committal when asked whether he was getting monthly pension from the BCCI as a former cricketer. "I am not aware if I am getting the pension or not. I have to ask my chartered accountant as to whether I have been getting my pension. I am not aware," he said.

Azad said he has written a letter to Finance Minister Pranab Mukherjee to take action against IPL for various financial irregularities.

"I have already written a letter to Finance Minister Pranab Mukherjee asking what action the government intend to take on the allegations of money laundering, tax evasion, foreign exchange violation by the IPL," he said.
The other two largest source of fake parts were the United Kingdom and Canada. The Committee identified instances in which both countries served as resale points for suspect counterfeit electronic parts from China.

India accounted for about one per cent of the counterfeit products.

The investigation also uncovered dozens of examples of suspect counterfeit electronic parts in critical military systems, including on thermal weapons sights delivered to the Army, on mission computers for the Missile Defense Agency's Terminal High Altitude Area Defense (THAAD) missile, and on a large number of military airplanes.


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