The proprietor of an Indian restaurant located in England has been handed down a prison sentence and subjected to a ban as a company director for two years due to the misappropriation of funds obtained through the British government’s Covid Bounce Back Loan initiative.
Operating under the umbrella of Shaa Ventures Limited, Zaman Shaa oversees the operations of Chutneys Indian takeaway food restaurant in Salisbury, situated in the southern region of England.
Zaman Shah, aged 53, was found guilty of violating British company legislation by initiating the dissolution process of his business before procuring the loan, despite its active trading status in the preceding three months.
During a court proceeding at Winchester Crown Court last month, Shaa received a 36-week prison sentence, which has been suspended for 18 months under stringent conditions, alongside a two-year disqualification as a company director.
Pete Fulham, Chief Investigator at the UK’s Insolvency Service, condemned Shaa’s actions, highlighting how he exploited a government scheme designed to aid businesses during a national crisis for his personal advantage. Fulham emphasized that Shaa's conduct was not impulsive but rather meticulously planned and executed over several weeks. The severity of the sentence and disqualification underscores the firm stance against directors who abuse financial assistance schemes intended to alleviate the impact of the COVID-19 pandemic.
In addition to the legal penalties, Shaa has been ordered to pay £6,000 (equivalent to USD 7,614) in costs, payable at a rate of £250 (equivalent to USD 317) per month, as determined during the hearing on February 23.
Court proceedings revealed that Shaa applied for a Bounce Back Loan amounting to £30,000 (equivalent to USD 38,071) in August 2020 while serving as the director of Shaa Ventures Ltd. However, he failed to fulfill his obligation to notify creditors of the pending dissolution of the company.
Further scrutiny by the Insolvency Service revealed that Shaa diverted the loan funds into his personal accounts, transferred a portion of the money overseas via a remittance service, and withdrew substantial sums in cash.
The disqualification order imposed on Shaa prohibits his involvement in the establishment, management, or promotion of any company without prior approval from the court until February 2026.
It's worth noting that in the UK, dining establishments offering cuisine associated with countries in the Indian subcontinent, encompassing Bangladesh, Pakistan, and Nepal, are commonly referred to as Indian restaurants.
The Insolvency Service clarified that following his conviction for various offenses including unlawful application for voluntary strike-off, failure to inform creditors of striking off application, and fraud by false representation, Shaa no longer holds any association with Chutneys Indian.
