The owner of a takeaway on the Lancashire border has been barred from being the director of a firm after he paid significant amounts of a covid loan into his personal account.
Nassir Mahmood, 46, of Sanworth Street, Todmorden, ran Pakistan Hot and Fast Food Takeaway Limited, which was based in Halifax Road in the town.
On March 10, 2021, Mahmood caused the business to apply for a Covid Bounce Back Loan (BBL) worth £50,000 and transferred £25,569 into his account.
Under the BBL scheme, businesses could apply for a loan between £2,000 and £50,000 subject to a maximum of up to 25 per cent of turnover.
Mahmood applied for a BBL for £50,000, which was £11,970 more than he was entitled to.
The Insolvency Service’s report said: “Under the terms and conditions of the scheme, funds provided in a BBL were to be used for the economic benefit of the business and were to be used wholly for business and not personal purposes.
“Mahmood applied for a BBL of £50,000, declaring in the BBL application that the funds would be used for the economic benefit of the business, and would be used wholly for business purposes and not personal purposes.”
Funds were received on February 5, 2021, taking the balance in the bank account of the business to £52,168.
Between February 6 and March 10, 2021, receipts into the bank account of the restaurant totalled £15,563, and debits totalled £24,472.
On March 10, a transfer of £43,300 was made to 'N Mahmood CAR INSURANCE’, of which at least £25,569 came from the BBL funds, which breached the terms and conditions of the BBL scheme.
Mahmood failed to provide evidence to the Insolvency Service that £25,569 of the £43,300 transferred to the account was used for the economic benefit of the takeaway.
When the business liquidated, the total liabilities were £99,801, of which £47,822 were owed in respect of the BBL.
Mahmood was banned from being a director for seven years, with the order starting on July 14.
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