Gurgaon: The Gurgaon Police, which is investigating the alleged Rs 870-crore fraud in Reebok India by former MD Subhinder Singh Prem and COO Vishnu Bhagat, on Thursday said the company's claim is "far from reality" and the amount "would be less".

"The amount involved in the scandal would be less," Maheshwar Dayal, DCP (East), Gurgaon said.

When asked what could be the magnitude of the scandal, he did not elaborate but said the company's claim that it will have to take a total hit of approximately Rs 870 crore and will have to incur a restructuring cost of Rs 487 crore is "far from reality".

When contacted, the company as well as Prem and Bhagat declined to comment.

Giving an update on the investigation so far, Dayal said three, out of "four secret warehouses", which Prem and Bhagat had allegedly operated to "keep diverted and stolen stocks”, have been found to be empty.

The possession of fourth "secret warehouse" where some goods were found was taken by the company, he added.

All the four warehouses are in Delhi - two in Bijwasan and Vasant Vihar each.

Reebok India, in its FIR filed on May 21, had stated that it has nine official warehouses but alleged that Prem and Bhagat were "operating four secret warehouses to keep the clandestinely diverted and stolen stocks" which were not reported in the books of the company.

Reebok India had alleged that Prem and Bhagat had indulged in "criminal conspiracy" and "fraudulent" practices over a period of time that resulted in a loss to Adidas group.

While the FIR had mentioned the loss at "approximately Rs 8,700 crore", Dayal had clarified on Wednesday that the company in its original complaint had stated that the hit due to alleged fraudulent practice of its two former top executives was "Rs 870 crore" and the amount mentioned in the FIR was a typographical error.
Reebok India 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.

Dayal further reiterated that now "the onus for proving these (former) two senior officials guilty lies with the company" and that was why the police had sought relevant documents and proof from Shahin Padath, Director, Finance, Reebok India.

So far the police have not received any other documents except the copy of the complaint now from the company, he added.


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