Applying for a BBL when their Company wasn’t trading resulted in the Co-Directors named being given matching 11 year bans.
11 Year Disqualification
Ragavendra Raajeswaran (‘Mr Raajeswaran’) colluded with his co-director to cause Sashank Ltd (‘Sashank’), a dormant Company, to apply for a Government backed Bounce Back Loan (‘BBL’) of £50,000, to which it was not eligible, and failed to use the BBL for the economic benefit of the business, contrary to the terms of the BBL Scheme.
In that:
- The BBL Scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019, or its estimated turnover if it had been established after January 2019.
- It was also a term of the BBL Scheme that the Company had to have been trading on 1 March 2020.
- Sashank was incorporated on 24 January 2014 and commenced to trade immediately.
- Accounts for the year ended 31 January 2019 were filed with Companies House on 30 October 2019 disclosing a turnover of £1,771.
- On 28 April 2021 dormant accounts were filed at Companies House for the financial year ending 31 January 2020, confirming the Company did not trade from 1 February 2019 to 31 January 2020.
- Company bank statements indicate the Company did not trade from 2019 onwards, and was not trading as at 1 March 2020.
- The directors have confirmed that the Company was not trading on 1 March 2020.
- Sashank applied for, and obtained, a BBL for £50,000 from Santander Bank, stating a turnover of £200,000 on 1 June 2020.
- On the same day, £25,000 was transferred to each of the directors.
- No evidence has been produced that any of the BBL funds were used for the economic benefit of the Company.
- Nine repayments to the BBL, amounting to just £998, have been identified on the Company bank statements.
11 Year Disqualification
Balaji Ramaswamy Thangaraj (‘Mr Thangaraj’) caused Sashank Ltd (‘Sashank’) a dormant Company, to apply for a Government backed Bounce Back Loan (‘BBL’) of £50,000, to which it was not eligible, and failed to use the BBL for the economic benefit of the business, contrary to the terms of the BBL Scheme.
In that:
- The BBL Scheme permitted a loan of up to 25% of a business’ turnover in the calendar year 2019, or its estimated turnover if it had been established after January 2019.
- It was also a term of the BBL Scheme that the Company had to have been trading on 1 March 2020. Sashank was incorporated on 24 January 2014 and commenced to trade immediately.
- Accounts for the year ended 31 January 2019 were filed with Companies House on 30 October 2019 disclosing a turnover of £1,771.
- On 28 April 2021 dormant accounts were filed at Companies House for the financial year ending 31 January 2020, confirming the Company did not trade from 1 February 2019 to 31 January 2020.
- Company bank statements indicate the Company did not trade from 2019 onwards, and was not trading as at 1 March 2020.
- The directors have confirmed that the Company was not trading on 1 March 2020.
- Sashank applied for, and obtained, a BBL for £50,000 from Santander Bank, stating a turnover of £200,000 on 1 June 2020.
- On the same day, £25,000 was transferred to each of the directors.
- No evidence has been produced that any of the BBL funds were used for the economic benefit of the Company.
- Nine repayments to the BBL, amounting to just £998, have been identified on the Company bank statements.
