Former restaurant owner banned for abusing loan scheme rules
The former owner of an Indian restaurant and takeaway in Litchfield has been banned from serving as a director for 12 years after claiming more than he was entitled to from the Eat Out to Help Out Scheme in 2020.
Belal Ahmed of Bengal Tandoori Lichfield made claims totalling £56,500 under the Eat Out to Help Out Scheme for his restaurant.
The Eat Out to Help Out scheme, launched by the government in August 2020, provided a 50% discount on food and non-alcoholic drinks at participating cafes, pubs, and restaurants on Mondays, Tuesdays, and Wednesdays.
However, an analysis of Bengal Tandoori’s bank statements by the Insolvency Service revealed in-house restaurant sales of only £8,055 for that month, showing Ahmed claimed at least £48,445 more than he was entitled to.
In June 2020, Ahmed also secured a £50,000 Bounce Back Loan by falsely stating the company’s turnover as £420,000.
Under the scheme, businesses could apply for loans up to 25% of their 2019 turnover, capped at £50,000.
Investigations found the actual turnover was closer to £150,000, meaning the company was only eligible for a loan of £37,500.
Ahmed agreed to a disqualification undertaking, and his 12-year ban began on August 7.
The ban prohibits him from being involved in the promotion, formation, or management of any company without court permission.
Bengal Tandoori Lichfield went into liquidation in June 2021, owing over £121,000 to creditors.
A restaurant continues to operate at the same address under a different company name, though Ahmed is not involved as a director.
Ann Oliver, Chief Investigator at the Insolvency Service, said: “Belal Ahmed provided misleading information to secure funds from not just one, but two Covid support schemes during 2020.
“Tackling Covid support scheme abuse is a key priority for the Insolvency Service and Ahmed’s behaviour represents a serious breach of the standards expected of company directors which is why he has been disqualified for the next 12 years.”
