The former owner of an Indian restaurant in Staffordshire has been banned as a director for 12 years after making false statements to abuse the Eat Out to Help Out Scheme.
In 2020, Belal Ahmed claimed almost £50,000 more than he was entitled to from the scheme for his restaurant Bengal Tandoori Lichfield.
The 59-year-old had also overstated his restaurant’s turnover to secure a £50,000 Covid Bounce Back Loan just two months before.
Insolvency Service analysis of the business’s bank statements showed in-house restaurant sales of a maximum of just £8,055 for August when the Eat Out to Help Out Scheme was running. Belal had submitted claims totalling £56,000, meaning the company claimed at least £48,445 more than it was entitled to.
Belal had also previously secured a £50,000 Bounce Back Loan in June 2020, claiming the turnover for the company was £420,000. Investigations revealed the turnover was closer to £150,000, meaning the company was only entitled to a loan of £37,500.
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.”
Bengal Tandoori Lichfield went into liquidation in June 2021 owing more than £121,000 to creditors.
