Read on for the facts relating to this case.
On 29 July 2020 Mr Raja Ramnauth (“Mr Ramnauth”) caused Ramnauth Retail Limited (“RRL”) to breach the conditions of the Bounce Back Loan (“BBL”) facility by applying for a BBL of £50,000 when he knew or ought to have known that RRL was not entitled to the loan having previously applied for a BBL on 12 May 2020 and received BBL monies of £50,000 on 14 May 2020.
Furthermore, Mr Ramnauth caused RRL to expend at least £45,896 BBL funds for purposes that did not provide economic benefit to RRL, in breach of the BBL terms and conditions.
In that:
- Under the BBL scheme businesses were able to apply for up to 25% of their turnover to a maximum of £50,000.
- Businesses which originally borrowed less than the maximum amount available to them under the Scheme were eligible to top-up their original loan, however the total loan amount was not to exceed 25% of the business’s turnover.
- Only one loan was available to businesses.
- On 12 May 2020 Mr Ramnauth made an application with Bank 1 for a BBL of £50,000 on behalf of RRL. The BBL funds were paid into RRL’s Bank 1 account on 14 May 2020.
- Between the period 15 May 2020 and 20 July 2020 transactions totalling at least £32,604 were made from RRL’s Bank 1 account that did not provide economic benefit to the company.
- On 29 July 2020 Mr Ramnauth made a further BBL application for a BBL of £50,000 on behalf of RRL with Bank 2.
- The BBL terms and conditions required the applicant to self-declare that they had not made any other application for a BBL for the business.
- The funds from RRL’s second BBL were paid into its Bank 2 account on 11 August 2020.
- Between 13 August 2020 and 8 November 2021 transactions totalling at least £13,292 were made from RRL’s Bank 2 account that did not provide economic benefit to the company.
- By obtaining a second BBL, RRL received at least £50,000 more than it was entitled to.
- Total liabilities at liquidation amount to £101,966 of which £99,566 relates to amounts owed in respect of the 2 BBLs.
