A director who managed an Indian restaurant in Stockton Heath has been disqualified for misusing a £50,000 Covid Bounce Back Loan. Ansarul Hoque applied for the loan in May 2020 for his restaurant, Cardamon, located on 109a London Road in Stockton Heath. The restaurant made a heartfelt statement as it closed its doors on May 31 this year, after 17 years in operation.
Records show that Mr. Hoque had been the director of Cardamon since 2011, and continued to run the business when the name changed to Indian 109A Ltd in 2018. Additionally, he is listed as a director of Manchester Construction and Development Ltd in Oldham.
The Covid Bounce Back Loans were intended to assist struggling businesses during the pandemic. Companies could receive a loan ranging from £2,000 to £50,000, up to 25% of their annual turnover for 2019. Applicants were required to certify their turnover and ensure the funds were used for the business’s benefit.
However, the Insolvency Service found that when the £50,000 loan was deposited into the company’s account on May 13, 2020, the same amount was transferred to Mr. Hoque on the same day. No evidence was provided to show that the money was used to support the business. The company later went into liquidation in November 2022, with liabilities totaling £224,309, including £41,540 related to the BBL.
As a result of his actions, Mr. Hoque has been disqualified from acting as a company director for five years. A new restaurant called Hungamma is expected to open in the vacant unit in Stockton Heath soon. The closure of Cardamon serves as a reminder of the importance of using financial assistance for its intended purpose and the consequences of misusing such funds. It also highlights the challenges faced by businesses during the pandemic and the need for proper financial management to ensure long-term sustainability.