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Corporate Affairs Ministry to prosecute Adidas

Last Updated: Thursday, August 22, 2013 - 23:15

Zee Media Bureau/Akhilesh Sourav Jha

New Delhi: As the Serious Fraud Investigation Office (SFIO) submits its report on alleged fraud of over Rs 870 crores by Reebok India in August 2012, the ministry of Corporate Affairs is all set to issue the prosecution orders against the global sport wear major, the Adidas.

As the parent company, Adidas which had acquired the Reebok in 2005, the ministry is gearing up to launch a formal prosecution within next few days.

Sachin Pilot, the minister, MCA while talking to the media on the sidelines of of a function said “yes we have got the report from SFIO and soon we will take a view on it and give the necessary orders in few days time”.

However, it is learnt that the ministry will base its prosecution charges on violation of corporate laws of the land and financial fraud to the tune of over Rs 870 crores. As sources confirm Zee Media , the senior officials of the ministry have been of the view that such a fraudulent activities could not have been done without the connivance of top management of the company.

Notably, the Punjab and Haryana High Court had granted bails to senior offcilas of Reebok India on July 17, 2013 as the duo had been lodged in jail for the past 10 months. Earlier, the Enforcement Directorate, Income Tax Department and Haryana Police had investigated the matter.

First Published: Thursday, August 22, 2013 - 23:15
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