Reebok India's ex- managing director Subhinder Singh Prem and former COO Vishnu Bhagat are among the five people who have been arrested by the Gurgaon police for their alleged involvement in a Rs. 870-crore scam in the company.

The three others arrested in the case are Sanjay Mishra, Prashant Bhatnagar and Surakshit Bhatt. All the arrested five were working for the renowned footwear maker.

Confirming the arrests, Gurgaon police commissioner K K Sindhu said, "The SIT has arrested five people accused of a role in the Rs 870-crore Reebok fraud and will produce them in a city court on Thursday."

The police said they were probing the matter and would get further details about the alleged scam after interrogating the arrested people.

Prem and Bhat have been slapped with a number of charges including fraud and criminal conspiracy, under IPC. The police alleged that these people siphoned off Reebok India's money by creating ghost distributors and generated forged bills over the past five years.

The FIR also alleges that Prem and Bhat had set up undisclosed warehouses, falsified accounts and indulged in fabricated sales. The duo allegedly sold goods but didn't deposit the recovered money in the company's account.

The FIR also mentioned that Reebok, which was acquired by Adidas in 2005, had suffered irreversible damage to its standing world over.