London private hire driver faces 11-year bankruptcy ban for falsely claiming £100,000 Bounce Back Loan

A private hire driver from London has been placed under stringent bankruptcy restrictions for 11 years after falsely claiming £100,000 in Bounce Back Loans during the Covid-19 pandemic.

Hafiz Saeed Ahmad, 47, residing on Meath Road, Ilford, secured two separate loans for his businesses, Sanwal Deliveries and Distribution, and a so-called taxi company. Both businesses were based in East London. Ahmad, however, inflated the turnover figures for both entities to qualify for the maximum loan amount under the Government scheme.

The fraudulent activity came to light when Ahmad declared bankruptcy in February 2024. The official receiver, responsible for investigating the causes of bankruptcy, discovered that Ahmad had overstated the turnover of both businesses to secure the loans. In July 2020, he claimed £50,000 for his delivery business and, two months later, applied for an additional £50,000 loan, this time for his taxi business.

Further investigation revealed that Ahmad failed to use the loaned funds for the economic benefit of either business, violating the conditions of the Bounce Back Loan scheme, which required the funds to be used for business purposes.

As a result, Ahmad has agreed to an 11-year Bankruptcy Restrictions Undertaking (BRU), extending his bankruptcy restrictions from the usual 12 months to August 2035. The restrictions prohibit Ahmad from acting as a company director without court approval, borrowing more than £500 without declaring his status, and holding certain positions in public organisations.

The Secretary of State for Business and Trade accepted Ahmad's Bankruptcy Restrictions Undertaking on 20 August 2024, solidifying his long-term ban.

Samantha Crook, Deputy Official Receiver at the Insolvency Service, said: “Hafiz Ahmad abused taxpayers’ money not once, but twice, taking out two separate loans based on false information, claiming more money than his businesses were entitled to receive. 

“These long-lasting restrictions will help to protect people from financial wrongdoing by limiting Ahmad’s access to credit and making others aware that there are sanctions against him.”