ibnlive » Business

ICAI begins inquiry against Reebok's key officers in 2012 fraud case

Press Trust of India
Jun 04, 2013 at 11:18pm IST

New Delhi: Accounting regulator ICAI on Tuesday said it has begun an inquiry against 'key management persons' of global sportswear major Reebok with regard to a fraud unearthed in 2012, but is yet to initiate the inquiry against the company's auditor at that time.

The Institute of Chartered Accountants of India (ICAI) has asked the auditing firm, Narsimhan & Co, to give their version and clarification on allegations about their role in the case and are still awaiting those details.

"We are awaiting information from audit firm of Reebok...we have not started the inquiry," ICAI President Subodh Kumar Agrawal told reporters. However, he said it has initiated inquiry against the "key managerial persons" of the company. In February, ICAI had said it had issued show-cause notice to Reebok India's former Chief Financial Officer Vishnu Bhagat regarding his role in the alleged Rs 870 crore fraud at the company in 2012.

Have started inquiry against Reebok's key officers: ICAI

The ICAI, however, said it was yet to initiate the inquiry against the company's auditor at that time.

The regulator had asked Bhagat to submit the information by March 31, 2013. The case relates to an FIR by Reebok India alleging fraud by its former Managing Director Subhinder Singh Prem and Bhagat. Both of them have denied the charges. In addition, Agrawal said that ICAI has disposed of all cases related to the Satyam fraud.

He said several senior officials of the company including S Gopalakrishnan and Srinivas Talluri have been found guilty by the regulator's disciplinary committee which has also recommended permanent ban on these officers.

Latest

More from this section