Indian restaurant owner disqualified over £48k Eat Out to Help Out fraud

The former owner of Bengal Tandoori Lichfield Limited in Staffordshire has been banned as a director for 12 years after making false statements to abuse the government’s Eat Out to Help Out scheme.

 

Belal Ahmed claimed almost £50,000 more than he was entitled to from the scheme for his Indian restaurant on Bore Street, Lichfield in 2020.

 

The 59-year-old 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.

 

Insolvency Service analysis of Bengal Tandoori Lichfield’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, nearly three times the actual figure.

 

Companies could apply for a single loan of up to 25% of their turnover from 2019, with a maximum loan limit of £50,000.

 

Investigations revealed Bengal Tandoori Lichfield’s 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, Jonathan Reynolds, accepted a disqualification undertaking from Ahmed, and his ban started on Wednesday 7 August.

 

This prevents him from being involved in promoting, forming or managing a company, without the permission of the court.

 

Bengal Tandoori Lichfield went into liquidation in June 2021 owing more than £121,000 to creditors.

 

A restaurant continues to operate from the same address under the name of the Bengal Indian Restaurant & Takeaway. Ahmed is not a director of this company.

 

The Eat Out to Help Out scheme was introduced by then-chancellor Rishi Sunak to support the hospitality sector throughout August 2020. It allowed restaurants, cafés, pubs, and other food outlets to offer a 50% discount to customers and claim a reimbursement from HMRC for the same amount.

 

In 2022 a parliamentary committee was told that almost £70m was claimed fraudulently or in error during the scheme, almost 10% of the money handed out by government.

 

Cases have included a Manchester takeaway boss wrongly claiming £50,000 of government support and a Yorkshire café owner jailed over trying to steal more than £430,000 through the scheme.