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May 28, 2012, 08.29 AM IST | Source: PTI

Court rejects bail plea of former Reebok India honchos

A local court rejected the anticipatory bail plea of Reebok India's former MD Subhinder Singh Prem and COO Vishnu Bhagat in connection with the Rs 870 crore alleged fraud in the company.

Court rejects bail plea of former Reebok India honchos

A local court rejected the anticipatory bail plea of Reebok India's former MD Subhinder Singh Prem and COO Vishnu Bhagat in connection with the Rs 870 crore alleged fraud in the company.

The two top former executives' counsel had filed a bail petition, arguing that no amount was fraudulently given to anybody except as "incentive" and "bonus" to the staff and distributors or dealers as per the company's policy and no stocks or goods were siphoned off.

On the other hand, Reebok's lawyer contended that it was a huge scam which took place when Prem and Bhagat were at the helm of the company for a long period.

After hearing both the sides, Justice Vikram Aggrwal rejected the bail plea. The company's financial director, Shahim Padath, had lodged an FIR on May 21 against the two top officials, alleging that they 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 8,70 crore in the books".

Gurgaon police had so far failed to arrest the duo while DCP (East) Maheshwar Dayal had reiterated that Reebok company have to first establish the charges by providing relevant documents and proof.

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