A director from Oldham who ran an Indian restaurant for more than a decade has been disqualified after he was caught exploiting a Covid Bounce Back Loan worth £50,000.
In May 2020, Ansarul Hoque of Main Road, Oldham, applied for a Covid Bounce Back Loan (BBL) of £50,000 for his Indian restaurant on 109a London Road in Stockton Heath, Warrington.
According to the Warrington Guardian, Cardamon restaurant made an emotional statement as it announced closing its doors on May 31 this year, after 17 years in business.
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Records on Companies House show Mr Hoque was the director of Cardamon as of 2011 and continued to run the business when the company name changed to Indian 109A Ltd in 2018.
The public records also reveal Mr Hoque is listed as a director of Manchester Construction and Development Ltd, registered on Union Street in Oldham town centre.
An Insolvency Service notice has revealed the 42-year-old 'breached' the terms and conditions when he filed for the BBL loan for the restaurant.
The loans were introduced during the pandemic as a way to help struggling businesses recover financially.
Companies could receive a loan between £2,000 and £50,000, subject to a maximum of 25 per cent of their annual turnover for the 2019 calendar year.
The applicant would then self-certify the turnover figure and be required to confirm that the BBL would only be used for the economic benefit of the business.
But the Insolvency Service record states that when funds of £50,000 were paid into the company's bank account on May 13, 2020, on the same date £50,000 was paid from Indian 109a Ltd to Mr Hoque.
The Insolvency Service stated "no evidence" had been provided by the director that the £50,000 was used to support the business.
The company then went into liquidation in November 2022 with liabilities totalling £224,309, of which £41,540 is in respect of the BBL.
As a result, Mr Hoque has been disqualified from acting as a company director for a period of five years.
Got a story? Email me Olivia.bridge@newsquest.co.uk
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