Lichfield restaurant owner disqualified over Eat Out to Help Out funding claims
The former owner of an Indian restaurant in Lichfield who falsely claimed nearly £50k more than he was entitled to from a government scheme has been banned as a director for 12 years.
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Belal Ahmed made false statements to obtain extra money from the Eat Out to Help Out scheme in 2020 for his Bengal Tandoori restaurant in Bore Street in Lichfield city centre.
He, submitted claims totalling £56,500 under the scheme.
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.
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Ahmed, aged 59, 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 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, of Hall Road, Smethwick and his ban started on Wednesday 7 August.
It 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
Ann Oliver, chief investigator at the Insolvency Service, said: "Mr 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."