Former takeaway boss found to be misusing Bounce Back Loans

A former Nottingham takeaway food boss have been banned after it was found he misused the Government’s Bounce Back Loan scheme.

Mujeebullah Khan and Muhammed Omair Javaid ran Chunky Chicken, a Nottingham takeaway until December 2019, when they sold the business.

However Mujeebullah Khan improperly applied for a government-backed Bounce Back Loan of £50,000 in the business name after the sale of the company. The money was used to repay a business creditor and who was also a relative of Muhammed Omair Javaid.

Both Mujeebullah Khan and Muhammed Omair Javaid made themselves bankrupt on 24 May 2021, citing debts of over £200,000 that included the Bounce Back Loan.

The pair signed bankruptcy undertakings that extend their restrictions for eight years. This means they are limited to what credit they can access, as well as not being able to act as a company director without the permission of the court.

Alan Draycott, the Deputy Official Receiver, said: “The Government loan schemes have provided a lifeline to millions of businesses across the UK – helping them to continue trading during the pandemic and protecting millions of jobs. As this case shows, the Insolvency Service will not hesitate to investigate and use our powers against those who abused the COVID-19 support schemes.”