MUMBAI, Sept 20 (Reuters) - Two former top executives of
Reebok India, owned by German sportswear maker Adidas
, have been arrested by police outside New Delhi after
they were accused of fraud that led to the company losing 8.7
billion rupees ($161 million).
Former India Managing Director Subhinder Singh Prem and
former Chief Operating Officer Vishnu Bhagat, along with three
others, had been arrested, said police officials in the northern
city of Gurgaon, where Reebok India filed the complaint in May.
"They have been arrested. We are seeking their custody in
court," said a police officer with the Economic Offences Wing of
the Gurgaon police, which is carrying out the investigation.
He declined to be identified as he is not authorised to
speak to the media. Phone calls to the Gurgaon police
commissioner were not answered.
Adidas India confirmed the arrests.
Last month Adidas said it did not expect any major change
from the 70 million euros ($86.1 million) in restructuring
charges it has already flagged as the cost of dealing with what
it called commercial irregularities in India.
Adidas also said in August it expects a fresh start for
Reebok India in 2013 and in May had indicated it would cut the
number of Reebok stores in India by one-third.
The German company bought U.S. rival Reebok in August 2005
for $3.8 billion but their Indian operations were merged only in
($1 = 54.0550 Indian rupees)
(Reporting by Nandita Bose; Editing by Mark Potter)