Here is the tale behind the 10 year ban the Company Director named is starting today, the 28th of June 2023
Razwan Inayat (“Mr Inayat”) caused Starside Management Limited (“Starside”) to breach the conditions of the Bounce Back Loan Scheme (“BBL”) by overstating Starside’s turnover in the BBL application, resulting in Starside receiving a larger loan of £50,000, than it was entitled to.
Furthermore he failed to use £30,000 of the BBL monies for the economic benefit of Starside.
In that:
- The BBL criteria allowed a business to borrow between £2,000 and up to 25% of the company turnover in calendar year 2019, with a maximum loan of £50,000.
- The terms of the BBL stated that its intended purpose was to provide economic benefit to the business and not for personal purposes.
- Mr Inayat applied for a BBL of £50,000 on Starside’s behalf, stating that the company’s annual turnover was £221,000.
- However accounts for the year ended 30 November 2019 showed a turnover of £83,441, which would result in a BBL of £20,860.
- By overstating Starside’s turnover, the company received £29,140 more than it was entitled to.
- On 9 July 2020, BBL funds of £50,000 were paid into Starside’s bank account.
- Between 7 October 2020 (the first transaction from the bank account since the receipt of the BBL monies) and 14 July 2021 ten payments of £3,000 each were made from the BBL funds amounting to £30,000, to accounts with another bank.
- According to Mr Inayat the monies were used in part for personal expenses and wages.
- There is no evidence to show that £30,000 of the £50,000 received as a Bounce Back Loan was used for the economic benefit of Starside.
- At the date of the Liquidation on 16 February 2022, funds of at least £62,239 were owed to creditors, of which £48,734 was owed to the bank, £12,205 to a trade creditor, and £1,300 to the director.
