Economic Offences Wing to handle massive fraud at Reebok India

Published: Wednesday, May 23, 2012, 12:07 [IST]

The Economic Offences Wing will now handle the massive fraud and pilferage alleged to have been committed by former Managing Director Subhinder Singh Prem and COO Vishnu Bhagat.

A report in the Times of India revealed that Reebok India on Tuesday lodged a first information report (FIR) with Gurgaon Police alleging that its former managing director Subhinder Singh Prem and COO Vishnu Bhagat had "stolen" products by setting up "secret warehouses", fudged accounts and indulged in fictitious sales to cause a Rs 8,700 crore dent to the company.

Fraud, poor corporate governance, siphoning of company funds are not uncommon in the Indian corporate context.

Recently, the IRB Chairman had to undergo a polygraph test, as part of investigations in a murder case. A foreign institutional investors has threatened a case against Coal India over corporate governance issues, while Veritas in a report said that DLF inflated sales by at least Rs11,236 crore and its profit before tax by Rs7,233 crore.

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Story first published: Wednesday, May 23, 2012, 12:07 [IST]

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