The director of a fried chicken shop has been disqualified from being a company director.

Nasar Hussain, 35, falsely applied for a government Bounce Back Loan (BBL) of £50,000 when his business, Papas Chicken UK Limited, was not eligible.

Hussain, whose last known address was Roberts Street in Nelson, has been disqualified for nine years by The Insolvency Service.

The service said on May 15, 2020, Hussain applied for the loan, making a false declaration to the lender of the company’s turnover.

Under the BBL scheme, businesses could apply for a loan of between £2,000 and £50,000 subject to a maximum of up to 25 per cent of turnover.

The figure was self-certified by the applicant and the figure required was that for the calendar year 2019 or where a business was established after January 1, 2019, its estimated annual turnover.

Papas Chicken was incorporated on May 9, 2018, and the liquidator was advised the company started trading immediately.

The company’s bank account was opened on December 27, 2019. The Insolvency Service said it has not been possible to establish which bank account the company used in the period from incorporation on May 9, 2018, until December 27, 2019.

No evidence of sales income in this period was provided, and on the basis there is no evidence of sales-related turnover in 2019, the company was not eligible for a BBL.

The company’s bank statements show receipts totalling £37,613 for the period January 14, 2020, to May 8, 2020.

Of this, £2,577 was received from HMRC JRS Grant and the remaining £35,036 was received from individuals and third parties.

On May 15, 2020, Hussain applied for a £50,000 BBL on behalf of Papas Chicken, declaring the annual turnover as £215,000. On the same day, £50,000 was received into the company’s bank account.

The company made 10 BBL repayments totalling £4,736 in the period June 8, 2021, to March 8, 2022.

On October 24, 2022, Papas Chicken entered creditors' voluntary liquidation. Total liabilities at liquidation amount to £46,264, of which £45,264 is in respect of the BBL.

The remaining £1,000 relates to unpaid accountancy fees.

Hussain’s ban on being a company director started on July 11.

Peter Fulham, chief investigator of the criminal investigation team at the Insolvency Service said: "Covid-19 financial support schemes were funded from the public purse to support genuine businesses during the pandemic.

"Directors who abused the scheme have exploited taxpayers.

“The Insolvency Service will act to remove directors who abused Bounce Back Loans from the business arena.”