Darshan Kumar SHARMA

Disqualified from

2024-12-09

Date of birth on record

November 1981

Mr Darshan Sharma ("Mr Sharma") caused A A Empire Ltd ("Empire") to obtain funds through the Government backed Bounce Back Loans ("BBL") which was not used for the economic benefit of Empire. In that: • Empire was incorporated on 03 May 2019. Empire traded as Empire Hotel, 19 Loughborough Road, Leicester ("the Hotel"). • The BBL Scheme allowed businesses to borrow between £2,000 up to 25% of a business' turnover with the maximum loan available being £50,000. As Empire was established after 1 January 2019, it was required to apply the 25% limit to the business' estimated annual turnover from the date the business started. • Mr Sharma applied for and Empire obtained a BBL of £50,000. The turnover in the BBL application was stated to be £300,000. • The £50,000 BBL was transferred into Empire's bank account on 06 May 2020. • Mr Sharma transferred £50,000 from Empire’s bank account to his personal account on 07 May 2020. Of this £50,000 at least £33,448 would have been the BBL funds. • Mr Sharma has stated that he transferred the £50,000 into his personal account because of fraudulent activity on Empire's bank account however this has not been evidenced. • On the 19 June 2022, a different company became liable for the business rates at the Hotel address. • On 01 July 2021, Mr Sharma consulted the Liquidator with a view to placing Empire into liquidation. • When asked to explain what the BBL funds were used on, Mr Sharma stated that the BBL funds were used to pay for the refurbishment and to purchase furnishings for Empire. Mr Sharma produced three invoices, two dated 10 June 2021 totalling £19,400 and one dated 01 July 2021 for £20,700 however the invoices do not evidence that these were the BBL funds. • The Statement of Affairs signed by Mr Sharma on 19 July 2021 and Empire was placed into the CVL on 23 July 2021. No assets were listed on the Statement of Affairs. • Payments made towards the refurbishment and for the furniture, were not for the benefit of Empire. They appear to have been for the benefit of the business entity who traded from the premises after Empire's liquidation. No financial compensation for these assets appears to have been made to the company or the liquidator. • The BBL remains outstanding at the date of Liquidation. Failure to deliver up adequate books and records 2. Mr Darshan Sharma ("Mr Sharma") caused A A Empire Ltd ("Empire") maintained, preserved and/or delivered up adequate books and records to the Liquidator. In the absence of adequate accounting records, it has not been possible to verify: o Whether the Covid grant of £25,000 transferred to Mr Sharma was used for genuine business purposes. o Whether two payments totalling £8,800 made from Empire’s bank account were for genuine business purposes o The true extent of Empire's income, expenditure and assets and when Empire ceased to trade. o Whether there was any sale of assets or transfer of Empire's business (including any contracts with Local Authorities). o What the happened to the assets, which were purchased in the lead up to the Liquidation