Reebok has lodged a police complaint on its Indian managers
REEBOK India has lodged a police complaint against two former executives alleged to have siphoned off Rs8.7bn (£99m/$155m) from the sportswear firm.
The two former employees are accused of forging records, stealing goods and creating ghost distributors across the country to defraud Reebok over five years.
A Reebok India spokesman said an FIR (first information report) had been lodged with police on Tuesday (May 22) against former managing director Subhinder Singh Prem and former chief operating officer Vishnu Bhagat over the alleged scam.
Reebok’s parent company, the German sports giant Adidas, said it would co-operate fully with the Indian authorities.
“We are given to understand that our criminal complaint has been registered for investigation by the Indian law enforcement authorities,” Adidas said in a statement.
Both men were dismissed in March when the fraud was first discovered, local reports said. They were not immediately available for comment.
Police in Gurgaon, a booming satellite city outside New Delhi, are investigating the complaint, which accuses the men of falsifying sales records and passing off genuine goods as defective products in order to sell them on.
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