By Samantha Jones-
A Southampton Nursing Agency Boss, has been disqualified as a director for 11 years after he wrongfully obtained a £45,000 Bounce Back Loan in July 2020.
Selvendran Rama was sole director of SJSA Ltd, which claimed to provide temporary nursing staff to hospitals, mental health services, care homes and residential homes. It was incorporated on 30 March 2020.
Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to £50,000. However, businesses had to have been trading prior to 1 March 2020 in order to qualify for funding through the scheme, meaning SJSA Ltd was not eligible.
In addition, Ramar overstated the company’s turnover to secure the Bounce Back Loan, confirming the company’s annual turnover was £180,000. In reality, in the first three months of trading the company had received just £5,500 in income.
Within just four days of obtaining the funds, Ramar transferred £35,000 to his personal account from the business and the remaining £10,000 to a family member. As SJSA Ltd went into liquidation in September 2021 it triggered an investigation by the Insolvency Service.
At the point of liquidation, the £45,000 Bounce Back Loan was the entirety of SJSA Ltd’s declared liabilities and the Liquidator managed to recover £25,000 of the Bounce Back Loan. Ramar did not dispute that he caused SJSA Ltd to obtain a Bounce Back Loan that it was not entitled to and he is now banned from running a business effective from 7 December 2022 for 11 years.
The Secretary of State for Business, Energy and Industrial Strategy accepted a disqualification undertaking from Selvendran Ramar, after he did not dispute that he caused SJSA Ltd to obtain a Bounce Back Loan that it was not entitled to. His ban is effective from 7 December 2022 and lasts for 11 years.
The disqualification undertaking prevents him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.
Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said:
Not only was Selvendran Ramar’s company not trading by the required 1 March 2020 date and therefore not entitled to receive the Bounce Back Loan, but he then tried to divert the funds for his personal use.
The purpose of the Bounce Back Loan scheme was that businesses were meant to utilise the monies specifically for the ‘economic benefit of the business’ which was clearly not the case here.