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Belal Ahmed secured almost £50,000 more than he was entitled to from the Eat Out to Help Out Scheme for his Bengal Tandoori Lichfield Limited company in August and September 2020
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Ahmed had previously abused another Covid support scheme that summer when he obtained a £50,000 Bounce Back Loan for the same restaurant in June 2020
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The 59-year-old has been banned as a director until August 2036 after investigations by the Insolvency Service
The former owner of an Indian restaurant in Staffordshire has been banned as a director for 12 years after making false statements to abuse the Eat Out to Help Out Scheme.
Belal Ahmed claimed almost £50,000 more than he was entitled to from the scheme for his restaurant on Bore Street, Lichfield in 2020.
The 59-year-old had also overstated his restaurant's turnover to secure a £50,000 Covid Bounce Back Loan just two months before.
Ann Oliver, Chief Investigator at the Insolvency Service, said:
Belal Ahmed provided misleading information to secure funds from not just one, but two Covid support schemes during 2020.
Tackling Covid support scheme abuse is a key priority for the Insolvency Service and Ahmed's behaviour represents a serious breach of the standards expected of company directors which is why he has been disqualified for the next 12 years.
Ahmed, of Hall Road, Smethwick, submitted claims totalling £56,500 under the Eat Out to Help Out Scheme for Bengal Tandoori Lichfield Limited.
Eat Out to Help Out was a government scheme subsidising food and non-alcoholic drinks at participating cafes, pubs and restaurants during August 2020.
Customers received a 50% discount on their order (up to £10 each) on Mondays, Tuesdays and Wednesdays at premises across the UK that had registered with the scheme.
Insolvency Service analysis of Bengal Tandoori Lichfield Limited's bank statements showed in-house restaurant sales of a maximum of just £8,055 for that month, meaning the company claimed at least £48,445 more than it was entitled to.
Ahmed had also previously secured a £50,000 Bounce Back Loan in June 2020, claiming the turnover for the company was £420,000.
Companies could apply for a single loan of up to 25% of their turnover from 2019, with a maximum loan limit of £50,000 set under the rules of the scheme.
Investigations revealed the turnover was closer to £150,000 at most, meaning the company was only entitled to a loan of £37,500.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Ahmed, and his ban started on Wednesday 7 August.
The ban prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
Bengal Tandoori Lichfield Limited went into liquidation in June 2021 owing more than £121,000 to creditors.
A restaurant continues to operate from the same address under a different company name. Ahmed is not a director of this company.
