Indian Takeaway Owner “NRI Zaman Shaa” Sentenced and Directorship
Banned for Covid Loan Misuse

Los Angeles/ Mar 05, 2024
NRIpress.club/Ramesh/ A.Gary Singh

"NRI Zaman Shaa", the former owner of an Indian takeaway, recently faced severe legal consequences for his misuse of a Covid Bounce Back Loan. The sentencing not only serves as a deterrent for fraudulent activities but also highlights the importance of maintaining business ethics, particularly during times of crisis.

• Zaman Shaa fraudulently secured a £30,000 Covid Bounce Back Loan during the pandemic 
• He illegally applied to dissolve his business and failed to inform creditors of his actions 
• Shaa was handed a suspended sentence, banned as a company director for two years, and ordered to pay costs of £6,000.

Zaman Shaa was sentenced to 36 weeks in prison, suspended for 18 months, when he appeared at Winchester Crown Court on Friday 23 February. He was ordered to pay £6,000 in costs, at a rate of £250 per month, at the same hearing. The 53-year-old Zamaan Shaa was also disqualified as a company director for two years

The misuse of Covid relief funds not only undermines the intended purpose of financial aid programs but also erodes public trust in the system. As businesses across the globe grappled with the economic fallout of the pandemic, such financial aid programs were crucial in ensuring their survival.

Moreover, the banning of Zaman Shaa as a director serves as a stark reminder that unethical practices can have long-lasting consequences on one's professional reputation and future business endeavors. Authorities are sending a clear message that financial aid programs are not to be abused, and those who engage in fraudulent activities will face serious repercussions.

Pete Fulham, Chief Investigator at the Insolvency Service, said: 

• Zaman Shaa exploited a scheme intended to help businesses during a national emergency for his own personal gain. 
• His actions cannot simply be dismissed as something he did in the spur of the moment. They required a degree of planning and sophistication over a number of weeks to execute. 
• The sentence and disqualification order for Shaa demonstrate we will not hesitate to take action against directors who have abused Covid financial support in such a manner.

Pete Fulham, Chief Investigator at the Insolvency Service, emphasized the level of sophisticated planning involved in Shaa's misconduct, emphasizing the gravity of his actions. This condemnation serves as a deterrent to others who may contemplate similar misuse of relief funds designed to aid struggling businesses.

The implications extend beyond individual accountability, resonating with the broader public trust in the integrity of financial aid programs. The sentencing and disqualification of Shaa from corporate management roles not only safeguard against future misconduct but also act as a safeguard for the credibility of government-initiated schemes.

Shaa, of Woodside Road, Salisbury, applied for a £30,000 Bounce Back Loan in August 2020 when he was the director of Shaa Ventures Ltd. His company used to manage the Chutneys Indian takeaway on Estcourt Road, Salisbury. Shaa broke company law before securing the loan by applying to dissolve his business, even though it had been trading in the previous three months. He also failed to fulfil his legal requirement to inform creditors that he had applied to dissolve the company.  Insolvency Service analysis of Shaa’s transactions indicated he transferred the funds into his personal accounts, sent some of the money abroad using a remittance service, and withdrew significant amounts in cash. 

The disqualification order prevents Shaa from becoming involved in the promotion, formation or management of a company, without the permission of the court before February 2026. 

As businesses strive to recover from the impacts of the pandemic, Shaa's case serves as a poignant reminder of the critical need for adherence to legal and ethical standards in business operations. Maintaining transparency with creditors and ensuring that emergency funds are used for their intended purpose are vital pillars in rebuilding the economy and fostering a business environment founded on integrity and accountability. The case of Zaman Shaa, therefore, stands as both a cautionary tale and a testament to the commitment to upholding ethical standards within the business community.

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