In more trouble for Reebok India, the income-tax department has launched a probe into its finances and has begun issuing notices to its executives after an alleged Rs 870 crore fraud 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 investigation 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 on Wednesday by the company with the Gurgaon police against its former managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat, Reebok India alleged that the duo had indulged in "criminal conspiracy" and "fraudulent" practices 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.
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