Here is the Winding Up Order along with an overview of this case.
Winding Up Order
Overview of the Case
Rajeeva Ramasamy (“Mr Ramasamy”) caused K S Transporters (UK) Limited (“KST”) 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, when he knew or ought to have known that KST 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 4 May 2020 Mr Ramasamy applied for a BBL of £40,000 from ‘Bank A’ on behalf of KST, which was paid into KST’s bank account with Bank A on 5 May 2020
- On 9 May 2020 Mr Ramasamy applied for a second BBL of £30,000 which was paid from a different lender, Bank B, and transferred into KST’s bank account held with Bank B on 11 May 2020.
- On 13 November 2020 Mr Ramasamy applied for a top-up loan of £10,000 with Bank A, the funds of which were paid into the bank account held with Bank A on 17 November 2020.
- The BBL terms and conditions in respect of ‘Bank B’ required the applicant to self-declare that they had not made any other application for a Bounce Back Loan for the business, which Mr Ramasamy falsely declared.
- KST entered Compulsory Liquidation on 20 September 2023 with estimated liabilities of £283,735.81, of which approximately £79,216.69 is owing in respect of both BBLs.
