The Corporate Affairs Ministry today ordered a scrutiny of the books of accounts ofsportswear maker Reebok's Indian arm over complaints of an alleged Rs 870-crore fraud. 

"We have ordered an enquiry under section 234 of the Companies Act, which is a non-invasive scrutiny. The Registrar of Companies (RoC) has been asked to submit its report in three days. Based on the report, we will order further scrutiny," a senior MCA official said. 

The official said the enquiry was ordered on the basis of a complaint from an investor. 

Under the Section 234 of the Companies Act 1956, the RoC can call for information or explanation from a company. 

When contacted, the Adidas Group said: "We are given to understand that our criminal complaint has been registered for investigation by the Indian law enforcement authorities...We shall continue to cooperate with the authorities in their investigation of the matter." 

MCA's move comes on the heels of the Gurgaon Police having formed a special investigation team to look into the alleged Rs 870-crore fraud case filed by Reebok India Co against its former MD Subhinder Singh Prem and COO Vishnu Bhagat. 

Yesterday, Reebok India had filed an FIR with the Gurgaon Police in which it said it will also incur a restructuring cost of Rs 487 crore to remedy the consequences of the "criminal and fraudulent" acts of its formers top executives. 

Earlier this month, Adidas group had announced that it had uncovered commercial irregularities to the tune of 125 million euros in its subsidiary Reebok India and Prem and Bhagat were sacked. It had also announced plans to close one- third of around 900 Reebok stores as part of a restructuring strategy. 

Reacting to the development, Prem had initiated legal action against the global giant for defamation and unfair termination of his services. (PTI)