Edit this postIt is shame for the nation when we see Reebok fraud in the light of integrity of people like managing directors getting into it to make a fast buck for their next generation. Nonetheless, guilty has been nailed as Reebok India's sacked MD Subhinder Singh and former COO Vishnu Bhagat have been arrested as they executed a Rs.870 crore fraud in the company. Subhinder Singh was made the Managing Director of Adidas India last year as a part of an integration of the businesses of both Adidas and Reebok brands. This fraud is a smaller version of Satyam fraud.
They had rented four warehouses without informing their seniors and used them to store goods and claimed they were supplied to genuine dealers. They also allegedly siphoned off goods to ghost companies and distributors across the country, claiming they were defective pieces.
The company's financial director, Shahim Padath, had lodged a formal complaint against the duo.
Lesson
Checks and balances needs to maintained at every level in a company as a company should not be so big enough that in the present automated world, they could not realise a 870 Crore scam as it should have had raised their tentacles that hoc come suddenly the defects in products have risen so high. Thus a system has to be in place which should get triggered as soon as smoke is seen in the air.
