Nine-year ban for Wolverhampton businessman who lied to get £50,000 Covid loan
Inderjit Singh Dadial, 32, was the sole director of Cali Juices, a specialty soft drink wholesaler based in the Penn area of Wolverhampton.
The business was incorporated in 2019 with its registered address first at Warstones Road before changing to Dudley Road.
In June 2020, Dadial successfully applied for £50,000 through the Bounce Back Loan scheme – the maximum amount available through the government initiative which has been exploited by fraudsters across the country.
In order to claim the £50,000, Dadial said his business returned £250,000 when the actual figure for accounts ending January 2020 was just over £2,000, the Insolvency Service found.
Dadial was listed as the sole employee of the business, which is now registered in Droitwich.
He got the loan, guaranteed by the government and interest-free for the first 12 months, although he was in fact not entitled to the money based on the company’s actual accounts and the income of his Bank accounts.
Dadial has now admitted grossly inflating the company’s turnover to secure the Bounce Back Loan and has been banned from running a business for nine years from March 21.
The disqualification prevents him from getting involved directly or indirectly in the promotion, incorporation or management of a business without the authorization of the court.
It comes two months after the Treasury confirmed it had written off £4.3bn of the £5.8bn of fraud found in its Covid business loan schemes.
Former Treasury minister Lord Agnew resigned in January angered by the handling of fraudulent coronavirus loans and has since criticized the Treasury’s anti-fraud efforts as an operation ‘dad’s army “.
Dave Elliott, the Insolvency Service’s chief investigator, said the Dadial case was proof he was hunting down fraudsters.
He said: “Inderjit Singh Dadial had significantly inflated the turnover on the application for a loan which Cali Juices Limited was not entitled to.
“The Insolvency Service will not hesitate to investigate and use its powers against those who have abused Covid-19 support schemes.
The Bounce Back Loan scheme allowed small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover.
The government guaranteed 100% of the loans, which were interest-free for the first 12 months, when the rate rose to 2.5% per annum.