Muhammad AYAZ

Disqualified from

2023-04-26

Date of birth on record

April 1983

Muhammad Ayaz Rehman ("Mr Rehman") caused Silhani Ltd ("Silhani") to apply for and receive two Government backed Bounce Back Loans ("BBL") both in the sum of £50,000. A company was only permitted to obtain one BBL for a maximum of £50,000. To be eligible to apply for a BBL of £50,000 declared turnover in the BBL application must be in excess of £200,000, Silhani did not have the necessary turnover to qualify for a BBL of a total of £50,000 as it did not commence trading and it is not apparent that the BBLs were expended in their entirety for the economic benefit of Silhani. In that: • Silhani was incorporated on 26 April 2019. • 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. To qualify for a £50,000 BBL, the BBL application would have stated that Silhani's turnover was £200,000 or more. As Silhani was established after 01 January 2019, the Applicant was required to apply the 25% limit to the business' estimated annual turnover from the date the business was started. • Silhani obtained a £50,000 BBL with Bank1 which was received on 06 October 2020 ("BBL1"). • On 08 June 2020, he states an application was made for a £50,000 BBL with Bank2. He received notification from Bank2 on 29 October 2022 that the BBL had been refused. • However, a Bank2 BBL Agreement was dated 30 October 2020 and Silhani received a second £50,000 BBL with Bank2 on 1 November 2020 ("BBL2") despite having already received the BBL1. • Silhani's accounts for the periods ended 30 April 2020 (sign by him on 9 July 2020) and 30 April 2021 (signed by him on 25 January 2022) recorded that the turnover for the periods ended 30 April 2020 and 30 April 2021 was £nil. Silhani did not commence trade as a coffee shop. • It is not apparent that either the BBL1 or the BBL2 were utilised for genuine company expenses. • Following the BBL1 being received on 06 October 2020, there were total payments out of the Bank1 account which totalled £52,000.50 including payments to him which totalled £36,240 (of which £20,740 was taken out on 10, 11 and 12 March 2021) and an associated female individual ("Individual F") received payments of a total of £15,500 (of which £15,000 was taken out on 10, 11 and 12 March 2021), which he states was to repay loans provided by Individual F. • Following the BBL2 being received on 01 November 2020, there were total payments out of the Bank2 account which totalled £54,022.64 including payments to him which totalled £41,700 (of which £37,000 was taken out on 10 and 11 March 2021) and Individual F received payments of a total (net) of £5,336 (of which £4,856 was taken out on 10 March 2021). • The 30 April 2020 accounts record a DLA of £30,699 owed by Silhani to him. The 30 April 2021 accounts do not record a DLA. The Statement of Affairs records a DLA of £8,213 owed by Silhani to him. • No payments were made to either Bank1 or Bank2 in respect of the BBLs and were outstanding at liquidation. He has paid £50,000 to the Liquidator on 30 November 2022 which is stated to have been made in respect of BBL2.