by Apparel Resources News-Desk
03-November-2018 | 2 mins read
Boopathy Kannikannan, an executive of VF Corporation’s India unit was recently arrested by Mumbai police for allegedly trying to fraud a franchise of Rs. 92 lakhs.
Apart from Boopathy, other VF’s directors; Punit Khosla, Kanchan Pant, Pankaj Agarwal, Pranav Kulkarni, and Sumit Roy have also been named as other accused by the police in a complaint that refers to a financial conflict between the brand that owns leading apparel labels such as Wrangler and Lee, and its franchise, Krysh Retail Private Limited (KRPL).
Claiming the allegations baseless, VF Brands India issued a statement recently stating that they are currently pursuing to take a legal action against KRPL.
“The baseless allegations and actions by the former franchisee are part of an attempt to convert a purely civil dispute into a criminal matter with the intention of pressuring VF Brands India and its employees. We strongly believe the claims against VF Brands India and our employees are false and deceptive; therefore, VF Brands India is pursing legal action to protect our company and its employees,” the statement said.
VF Brands India also added that the employee who was detained and assisting authorities in an investigation was granted bail on November 12th by the Mumbai Magistrates Court.
It is important to add here that the Mumbai High Court on November 2nd, 2018 passed an order stating that no coercive action be taken against VF Brands India and its employees. The court observed that there was no justification for the arrest carried out.
“We will continue working with the authorities to fully understand the situation as we provide all support needed for the investigation, “said VF Corp in the statement.
Going back to the case, the police had affirmed that KRPL inked an agreement with VF Brands back in 2010 which cited that the American apparel conglomerate will pay 30 per cent of profits out of its apparel sales to KRPL.
However, in 2016, KRPL decided to wrap-up its business and during the investigation, they found out that VF had asked them to pay Rs. 92 lakhs towards the supply of clothes last year to its Kurla Shop in Phoenix Mall. When the franchise elucidated that it had shuttered down the said outlet two years back, the police found that the documents submitted by VF Brands India were forged and the mentioned merchandise has been sent to a different franchise.
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