Bangalore: India's corporate fraud detection body Serious Fraud Investigation Office (SFIO) is likely to submit its report in two months on the probe into a fraud by two former executives of Reebok India that cost the company Rs 8.7 billion, Corporate Affairs Minister Veerappa Moily said Friday.
"We (union government) have given four months for SFIO to investigate and give us a report on the matter. The agency is briskly probing the issue. May be within two months SFIO may come out with a report," Moily said on the sidelines of a conference.
Earlier May, the world's second largest sports goods maker Adidas AG-owned Reebok India had filed a police complaint against its former managing director Subhinder Singh Prem and ex-chief operating officer Vishnu Bhagat, accusing them of fudging the company's accounts and indulging in unfair practices.
The services of two accused were terminated in March, the German company Adidas had said in March.
Adidas charged the two former executives with stealing products, establishing secret warehouses, fudging accounts and engaging in fictitious sales for many years.
The company also alleged that the two officials "fraudulently" collected money from prospective franchisees on the pretext of opening new stores.
Prem and Bhagat have denied any wrongdoing.
Last month, Adidas said that it has decided to shut down about one-third of Reebok outlets in India as it looks to restructure business activities in the country, after noticing commercial irregularities at Reebok India.
Currently, about 900 Reebok outlets are operational in India.
Adidas acquired its British rival Reebok for $3.8 billion in 2005, but the two firms merged in India only last year.
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