I-T finds no sign of big fraud in Reebok case

About two months after a criminal case was filed by Reebok India against two of its former employees over a scam allegedly involving Rs 870 crore, the Income Tax department has found that it may not be a case of corporate fraud as made out and could involve tax evasion to the tune of Rs 140 crore.

The department, in its probe till now, has found that there do not exist signs of a clandestine "corporate layering" or veiled laundering in the finances of the company but the case qualifies under the category of manipulation and mis-representation of "discounts" offered by the firm to its dealers and manipulation of books of accounts, sources said

The I-T has now checking the account books and financial documents of a number of select Reebok dealers in India, to whom it has begun issuing notices.

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