Lichfield restaurant owner banned for abusing Eat Out to Help Out scheme

The Eat Out to Help Out scheme aimed to protect jobs, external in the hospitality sector during the coronavirus pandemic by encouraging people to dine out.

Food and non-alcoholic drinks at participating cafes, pubs and restaurants were subsidised, with diners receiving a 50% discount on Mondays, Tuesdays and Wednesdays during August 2020.

Since then, it has come under fire, with government scientists saying they were not consulted and that it was “highly likely” to have increased Covid infections and deaths, although Rishi Sunak defended the scheme during the Covid inquiry.

Under the rules of the scheme, companies could apply for a single loan of up to 25% of their turnover from 2019, with a maximum loan limit of £50,000.

Mr Ahmed, from Smethwick, claimed turnover for Bengal Tandoori Lichfield Limited was £420,000 – but The Insolvency Service said investigations discovered actual turnover was closer to £150,000, meaning the company was only entitled to a loan of £37,500.

He had submitted claims totalling £56,500, but a review of bank statements showed in-house restaurant sales of a maximum of just £8,055 for that month, meaning the company had actually claimed at least £48,445 more than it was entitled to.

Ann Oliver, chief investigator at The Insolvency Service, said Mr Ahmed had “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,” she said.

Ahmed signed a disqualification undertaking, external, which involves voluntarily disqualifying yourself as a company director and ends court action.

The ban, which began on 7 August, prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.

Bengal Tandoori Lichfield Limited went into liquidation in June 2021, owing more than £121,000 to creditors, The Insolvency Service said.