In a major development, Corporate Affairs Minister Veerappa Moily has said that Reebok fraud case has been referred to serious fraud investigation office (SFIO). The minister has said something wrong was found in the accounts of Reebok India and therefore SFIO would look into the issue.

It may be recalled that Reebok India slapped cases against Reebok India former managing director Subhinder Singh Prem and former chief operating officer Vishu Bhagat. The company has said that the duo cheated the company by allegedly selling setting up secret warehouses and selling products to secret companies for lower prices. The company has also said that the entire cost of the fraud was around Rs. 870 crore.

The case against the duo was filed with Gurgaon police and the moment case was slapped, it became a big news given the fact that it involved big scam and big company. The economic cell of Gurgaon police conducted a probe into the case and found out that the duo rented secret warehouses and siphoned off goods to ghost companies.

Since the scam is a big one, the Centre looked into the issue and today Moily came out with these statements.

(Phani)