In more trouble for Reebok India, the I-T department has launched a probe into its finances and has begun issuing notices to its executives after an alleged Rs 870-crore fraud case was detected by the company against two of its top officials.
The Gurgaon police has already constituted a Special Investigation Team (SIT) to probe the case. The Income Tax department, which had earlier this month conducted a survey at the Gurgaon office of the sportswear manufacturer, has recently collected additional financial documents including from some of those of the firm based in the country.
The I-T officials are also looking at the corporate structuring and financing of the company. Notices for production of documents, personal transactions and I-T returns for the last four years have been sought by the authorities from the India-based executives of the firm for the I-T probe for checking possible financial wrongdoing in the company and subsequent tax evasion, sources said.
The I-T investigations directorate has also alerted its intelligence wing in this regard to supply it with necessary inputs after Adidas, owner of Reebok, recently claimed commercial irregularities in its India operations.
As per the FIR filed yesterday, by the company with the Gurgaon police, against its former MD Subhinder Singh Prem and COO Vishnu Bhagat, Reebok India alleged that the duo had indulged in 'criminal conspiracy' and 'fraudulent' practises over a period of time that resulted in Adidas group taking a "total hit of approximately Rs 870 crore in the books."
Reebok India is a part of the Adidas group. In the FIR, Reebok India had 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. Reebok India had alleged that Prem and Bhagat had indulged in 'criminal conspiracy' and 'fraudulent' practices over a period of time that resulted in a loss to Adidas group.
While the FIR had mentioned the loss at "approximately Rs 8,700 crore", Dayal had clarified on Wednesday that the company in its original complaint had stated that the hit due to alleged fraudulent practice of its two former top executives was "Rs 870 crore" and the amount mentioned in the FIR was a typographical error.
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.
Dayal further reiterated that now "the onus for proving these (former) two senior officials guilty lies with the company" and that was why the police had sought relevant documents and proof from Shahin Padath, Director, Finance, Reebok India.
So far the police have not received any other documents except the copy of the complaint now from the company, he added.