Read on for the gory details of this case.
Mr Charnjit Singh Sangha (“Mr Sangha”) caused Great Haulage Limited (“GHL”) to breach the terms and conditions of the Government backed Bounce Back Loan (“BBL”) scheme by applying for and receiving a second BBL, having already applied for a BBL from a different lender on the same day, when he knew or ought to have known that GHL was not entitled to a second BBL.
In that:
- Under the BBL scheme businesses were able to apply for up to 25% of their turnover in the calendar year 2019, from a minimum of £2,000, up 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 original self-certified turnover, or £50,000, whichever was lesser.
- Only one loan was available to businesses.
- On 12 June 2020, Mr Sangha applied for a BBL of £30,000 from Bank A on behalf of GHL, which was paid into GHL’s bank account held with Bank A on 16 June 2020.
- On 12 June 2020, Mr Sangha applied for a BBL of £50,000 from a different lender, Bank B which was paid into GHL’s bank account held with Bank B on 17 June 2020.
- The BBL terms and conditions for both banks required the applicant to self-declare that they had not made any other application for a BBL for the business.
- Mr Sangha falsely declared that GHL had not previously applied for a BBL with a different lender.
- Mr Sangha knew or ought to have known that GHL was not entitled to the second BBL when the second application for the BBL was made.
- GHL entered Creditors Voluntary Liquidation on 22 May 2023 with liabilities of £83,717.17, £54,896.46 of which was owing in respect of the two BBLs.
