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There is a new twist in the ongoing investigations into Reebok by SFIO. Sources say that the corporate fraud agency has so far not found any evidence of large scale fund misappropriation by the two key accused -- Subhinder Singh Prem and Vishnu Bhagat.
The Serious Fraud Investigation Office, which has been probing the alleged Reebok scam over the last one month, has not found any evidence of misappropriation of funds by the two key accused: Subhinder Singh Prem and Vishnu Bhagat yet. Highly placed sources have told CNBC-TV18’s Ronojoy Banerjee that the documents submitted by Reebok India do not substantiate the Rs 870 crore loss claimed by the sports apparel maker in its FIR.
It's been a month since the Serious Fraud Investigation Office began its probe into the 870 cr scam allegedly pulled off by its former MD and COO. But Interestingly, the SFIO has so far found no evidence of siphoning of funds by the two accused.
Moreover, investigators believe the Rs 870 crore figure looks far too exaggerated.
Sources say, the SFIO has found no evidence so far to substantiate The Rs 147 crore loss claimed by Reebok in its FIR dated May 21st 2012 on account of goods billed but not dispatched.
The SFIO's findings come after investigations revealed that supporting documents submitted by Reebok India over the last month does not support the allegations.
Sources meanwhile maintain that if there were indeed commercial irregularities they seem only 'minor' in nature for instance the incentives the accused allegedly claimed for sales that never really happened.
The two key accused are likely to be questioned again by SFIO in the coming weeks.
SFIO officers say that it has just been a month since the probe was initiated and things could change by September when they will submit the final report to MCA. But so far there is very little evidence to support Reebok's case.
SFIO's preliminary findings comes less than a fortnight after the registrar of companies found that there was no falsification of accounts and also hinted that the company officials may have turned a blind eye on the matter. The truth is far from clear at this stage.
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