From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Jun 29: The Rs 870 crore fraud by two former top executives of multi-national Adidas-owned company, Reebok India, is under the investigation by the Serious Fruad Investigation Office (SFIO) and its report is expected in a couple of months, Union Corporate Affairs Minister M Veerappa Moily said on Friday.

Talking to reporters after addressing a national conference on State of Corporate Fraud Control in India organized by ASSOCHAM in Bangalore, he said the SFIO had been asked to complete its investigation and submit its report in four months. ''But we are hopeful of getting the report much earlier,” he said.

The Adidas-owned Reebok India had filed an FIR alleging that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in the Rs 870 crore fraud by indulging in criminal conspiracy and fraudulent practices over a period.

The two executives, however, have denied the charges.

Moily declined to comment on the US Court decision of absolving the multi-national company Union Carbide, which was responsible for the Bhopal gas tragedy, and its then chairman Warren Anderson of any liability as the Court held that the Union Carbide cannot be held liable to the actions of Union Carbide India Ltd.

Earlier, in his address, Moily said the Government would take concrete steps to strengthen SFIO and give it   statutory powers. ''SFIO is best equipped to investigate cases of corporate frauds,” he said.

Referring to delays in investigation and prosecution in corporate fraud cases, Moily said specialized courts would be established to exclusively try the fraud cases so that investigation and prosecution of accused persons is completed within reasonable time in all corporate fraud cases in all corporate fraud cases.

Moily said the Government was in the process of putting up a slew of measures which would usher in a regime of ''Enlightened Regulation.” A high level Committee under the Chairmanship of Adi Godrej to draft a National Policy Document on Corporate Governance has been constituted.

The Government will draw up the policy soon after receiving the committee’s report, he said explaining that it would synthesise disparate elements in diverse guidelines, incorporate current international trends and anticipate emerging demands on corporate governance in enterprises.

Moily also said the New Companies Bill will lay a lot of emphasis on Whistleblowers’ protection.

ASSOCHAM Southern Regional Council Co-Chairman Jacob Crasta emphasized the need for maintaining transparency in business operations. He called for incorporating improved controls in financial reporting process.