Close X
Sunday, January 12, 2025
ADVT 
International

Indian-origin businessman jailed for loan fraud in UK

Darpan News Desk IANS, 16 Feb, 2023 02:41 PM
  • Indian-origin businessman jailed for loan fraud in UK

London, Feb 16 (IANS) An Indian-origin businessman has been sentenced to 12 months imprisonment in the UK for having abused an interest free loan scheme provided to businesses impacted by the Covid-19 pandemic.

Kulwinder Singh Sidhu, 58, from Stanwell, pleaded guilty to offences under the Companies Act and the Fraud Act, having abused the Bounce Back Loan financial support scheme in 2020.

He was director of Wavylane Ltd, a haulage company based in Stanwell, and which had been trading since 2010. "Our action has ensured repayment of the loan money and taxpayers have not been left out of pocket," Julie Barnes, Chief Investigator at the Insolvency Service, said.

"Any other company directors who might be tempted into dissolving their business to try to keep public money they are not entitled to, should be aware they are risking a lengthy prison term," she added.

On 9 June, 2020 Sidhu applied for a 50,000 pound Bounce Back Loan from his bank on behalf of his business. Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to a maximum of 50,000 pound.

The loan was paid into the company bank account and on June 26, 2020 Sidhu filed paperwork with Companies House to have the business dissolved, having transferred the funds to his personal bank account within two days of receipt.

The striking-off application to dissolve the company was explicit that interested parties and creditors, such as a bank with an outstanding loan, must be notified within seven days of making an application to dissolve a company. The form also highlighted that failure to notify interested parties is a criminal offence, however Sidhu did not follow these rules.

The company was dissolved in October 2020, and was subsequently identified as likely Bounce Back Loan fraud by the Insolvency Service and cross-government counter-fraud systems.

The Insolvency Service investigation found that Sidhu had fraudulently overstated the company turnover in the Bounce Back Loan application, and within two days of receiving the money he had transferred it to his personal account before dispersing the funds to his son and another company.

He pleaded guilty to charges in December last year, and was sentenced on February 13, this year at Guildford Crown Court.

The court imposed a confiscation order for 50,000 pound, which Sidhu has paid in full. In addition to the custodial sentence, he was also disqualified as a company director for six years.

MORE International ARTICLES

Indian-Americans Urge US Congressman Ro Khanna To Leave Pakistan Caucus

Indian-Americans Urge US Congressman Ro Khanna To Leave Pakistan Caucus
Ro Khanna, 42, became the first Indian-American to have joined the Congressional Pakistan Caucus last month. He is also the member Congressional Caucus on India and Indian-Americans, which is the largest country-specific caucus in the House of Representatives.  

Indian-Americans Urge US Congressman Ro Khanna To Leave Pakistan Caucus

Trump Signalling He Considers PM Modi Ally: Ex Pak Envoy On Texas Event

Donald Trump said he will join PM Modi for the mega Indian community event "Howdy, Modi!" in Houston. This would be the 3rd meeting between Trump and PM Modi this year. The previous 2 were on the sidelines of the G20 Summit in Japan in June and on the sidelines of the G7 Summit in France in July.  

Trump Signalling He Considers PM Modi Ally: Ex Pak Envoy On Texas Event

Lahore Man Chops Off Wife's Nose, Hair After A Heated Argument

A man in Lahore on Tuesday cut off his wife's nose and hair during a fight following which the woman was rushed to a hospital, the police said.

Lahore Man Chops Off Wife's Nose, Hair After A Heated Argument

Pakistani Teen Beaten To Death Over Arcade Game

Pakistani Teen Beaten To Death Over Arcade Game
A Pakistani teen has been beaten to death by his friend over a token to be used to play a game at an arcade in the country's Punjab province, according to a media report.

Pakistani Teen Beaten To Death Over Arcade Game

Brad Pitt Phones NASA Astronaut, Asks 'Did You Spot India's Chandrayaan 2 Vikram Moon Lander'?

The fate of India's Chandrayaan 2 Vikram lander found a surprise mention during Hollywood superstar Brad Pitt's question-answer session with a NASA astronaut.

Brad Pitt Phones NASA Astronaut, Asks 'Did You Spot India's Chandrayaan 2 Vikram Moon Lander'?

Pak Hindu Medical Student Nimrita Kumari Found Hanging From The Ceiling Fan In Her College's Hostel Room

While the university authorities have expressed the suspicion that it could be a case of suicide, the student's family members have alleged foul play.

Pak Hindu Medical Student Nimrita Kumari Found Hanging From The Ceiling Fan In Her College's Hostel Room