In the case outlined below the Liquidator is apparently trying to work out whether it is worth pursuing the Company Director for recovery of the BBL funds, if he has funds to repay the three BBLs he bagged.
The Insolvency Service has successfully secured restrictions against a gym operator after they falsely applied for bounce back loans.
Junaid Dar (31), from Birmingham falsely applied for £48,500 from the Bounce Back Loan scheme, intended to support businesses during the pandemic.
The Insolvency Service began to investigate his conduct after his company, JDarPT Ltd, entered into liquidation in July 2021.
Investigators uncovered that Junaid Dar legitimately applied for a Bounce Bank Loan after he submitted accurate financial statements and in May 2020, received £13,000 from Lloyds.
However, Dar also applied for additional loans by applying to two separate financial institutions, HSBC and NatWest. The company received in total a further £32,500 in loans which it was not entitled to.
Junaid Dar is now banned from running companies for 11 years, effective from 27 April 2022.
The Liquidator is assessing Junaid Dar’s abilities to repay the funds and will pursue if they have the means.
Sue Macleod for the Insolvency Service, said:
Bounce Back Loans were made available for trading businesses adversely affected by the pandemic and were issued based on accurate financial statements.
Junaid Dar cynically applied for loans far greater than he was entitled to and clearly thought he could get away it.
Thankfully our interventions uncovered this, and his restrictions will prevent him from abusing their position in the future.