Takeaway boss given nine-year ban after falsely claiming £31,000 Bounce Back Loan

The owner of a Leicester takeaway has been disqualified from running a company for nine years after falsely claiming £31,000 in Bounce Back Loans.

Muhammad Rais, 42, from Leicester, exaggerated the turnover of his business to falsely claim thousands of pounds of government support.

He received the money as part of a scheme to support businesses that were facing hardship during the coronavirus pandemic.

Companies were entitled to Bounce Back Loans of up to 25% of their 2019 turnover, up to a maximum of £50,000, to support their business.

Rais was the sole director of Lokma BBQ Ltd in Leicester until the company went into liquidation in January 2022.

The company came to the attention of the Insolvency Service following its liquidation when investigators discovered that Rais applied for a £50,000 Bounce Back Loan, stating that the takeaway's turnover the previous year had been £200,000.

However, Lokma BBQ's actual turnover for 2019 had been around £74,000, meaning the company had received £31,000 in government-backed loans which it wasn't entitled to.

Rais has agreed with the liquidator to re-pay £8,000 of the money owed through monthly instalments.

Tom Phillips, assistant director of investigation and enforcement services for the Insolvency Service, said Rais "completely abused" the system to further his own interests.

He added: "[Rais' ban] should serve as a stark warning to other directors who may have misused financial support during the pandemic that we have the ability to bring your actions to account and remove you from the corporate arena."

Last month the directors of a mobile catering firm were disqualified for a total of 16 years after falsely claiming a £20,000 Bounce Back Loan.

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