INDIA: Reebok reportedly booked for FEMA violations
Adidas-owned Reebok India may face penal action and money laundering charges for running unauthorised retail outlets as well as breach of export commitments, according to local media reports.
The company is said to have been booked by the government's Enforcement Directorate for alleged violations of the Foreign Exchange Management Act (FEMA). The department is responsible for enforcing economic laws and fighting economic crime.
A case for alleged FEMA violations has been registered against Reebok India as the firm failed to keep its commitment to export goods worth INR80m in the first 10 years of its operations, according to reports in the Economic Times.
Reebok was allegedly allowed to begin operations in India after agreeing not to engage in retail sales and meet export commitments. It also promised not to import goods that could be manufactured locally.
The Economic Times reported that the investigation found Reebok India hardly manufactured any goods locally, importing most of its products from South East Asia.
A spokesperson for Adidas told just-style that it has responded to the authorities in the past and "proven that the Adidas Group fully complies to the conditions set by the respective regulatory bodies of the country.
"In case of any further queries we will continue to extend full cooperation to them. Please understand that we cannot share any further details."
The spokesperson emphasised that the case is unrelated to ongoing investigations in its Reebok India operations, which led to the group's senior management staff being axed and the group forecasting an hit of up to EUR125m after it discovered commercial irregularities earlier this year.
Weak consumer spending, difficulties in securing credit, competition from China and the Far East resulted in factory closures and subsequent layoffs in 2012. But ramping up labour and sustainability s...
This report analyzes the worldwide markets for Sports and Fitness Clothing in US$ Million by the following Product Segments: Sports Apparel, and Fitness Clothing. The report provides separate comprehe...
Women's wear retailer Cache has appointed Jay Margolis as its chairman and chief executive officer, replacing Thomas Reinckens who has stepped down....
Gene McCarthy, senior vice president of footwear at Under Armour, is to leave the performance apparel and footwear specialist next month....
Adidas has appointed the COO of its Chinese business, Erick Haskell, to head its operations in India. ...
Singapore-based apparel company Ocean Sky is set to be acquired by Luen Thai Holdings for US$55m. ...
Sportswear giant Adidas says it remains committed to sourcing in China and will continue to work with more than 300 suppliers there despite shutting its only company-owned Chinese apparel factory earl...
Yue Yuen, the world's largest manufacturer of branded athletic and casual footwear, has seen its full-year profit jump 12.5% helped by higher sales and more stable material prices....
- Garment manufacturers eye Myanmar outsourcing
- PSF 2014: Shifting focus from cost to consumer
- PSF 2014: No one size fits all in apparel sourcing
- Mexico's shoe makers blame their woes on China
- SuperGroup realigns supply chain to support growth
- Adidas China supplier in discussions over strike
- Bangladesh PM asks clothing buyers to pay more
- Jones CEO to depart as Sycamore splits business
- Workers strike at Adidas supplier shoe factory
- City sees "no quick fix" for Debenhams
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Jeans in Italy
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects