The former owner of a Lichfield restaurant has been banned as a director for 12 years after making false statements to abuse a Covid support scheme.
Belal Ahmed claimed almost £50,000 more than he was entitled to from the Eat Out to Help Out Scheme for his Bore Street restaurant in 2020.
The 59-year-old had also overstated his restaurant’s turnover to secure a £50,000 Covid Bounce Back Loan just two months before.
He has been banned as a director until August 2036 after investigations by the Insolvency Service.
Chief Investigator Ann Oliver 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.”
Ahmed, of Hall Road, Smethwick, in the West Midlands, submitted claims totalling £56,500 under the Eat Out to Help Out Scheme for Bengal Tandoori Lichfield Limited.
Eat Out to Help Out was a government scheme subsidising food and non-alcoholic drinks at participating cafes, pubs and restaurants during August 2020.
Customers received a 50 per cent discount on their order (up to £10 each) on Mondays, Tuesdays and Wednesdays at premises across the UK that had registered with the scheme.
Insolvency Service analysis of Bengal Tandoori Lichfield Limited’s bank statements showed in-house restaurant sales of a maximum of just £8,055 for that month, meaning the company claimed at least £48,445 more than it was entitled to.
Ahmed had also previously secured a £50,000 Bounce Back Loan in June 2020, claiming the turnover for the company was £420,000.
Companies could apply for a single loan of up to 25 per cent of their turnover from 2019, with a maximum loan limit of £50,000 set under the rules of the scheme.
Investigations revealed the turnover was closer to £150,000 at most, meaning the company was only entitled to a loan of £37,500.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Ahmed, and his ban started on Wednesday 7 August.
The ban prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
Bengal Tandoori Lichfield Limited went into liquidation in June 2021 owing more than £121,000 to creditors.
A restaurant continues to operate from the same address under a different company name. Ahmed is not a director of this company.
