Bradford dealer Javed Akhtar must repay £66,917 after fraudulently securing a £50k Covid Bounce Back Loan – court verdict explained.

Court ruling and repayment order

Why did a used‑car dealer in Bradford face a confiscation order of more than £66,000? Javed Akhtar, 49, appeared at Bradford Crown Court on 6 August and was ordered to return £66,917 within three months or risk six months’ imprisonment, while the debt remains enforceable.

What Led a Bradford Used‑Car Dealer to Repay £66,917 After Covid Bounce Back Loan Fraud?

Previous sentence and director ban

Earlier in the year, in March, the same court suspended a 20‑month prison term for Akhtar for two years and required him to complete 250 hours of unpaid work. The suspension followed his admission that he had fraudulently applied for a Covid‑19 Bounce Back Loan on behalf of Natasha Motors Ltd.

Details of the Bounce Back Loan fraud

Natasha Motors Ltd received a £50,000 loan – the maximum amount permitted under the Bounce Back scheme – in May 2020. In the application Akhtar claimed the company’s annual turnover was £400,000. During a police interview he gave conflicting figures, alternately stating turnover of £200,000 or £300,000 for 2019, despite previously describing the business as “booming”.

Akhtar said the loan paperwork had been completed by the company’s accountant at his instruction, but he later failed to supply the liquidator with sufficient accounting records when the business entered liquidation in April 2021.

Use of the funds

According to the Insolvency Service, about 99 % of the borrowed money was channelled into buying and selling second‑hand cars for a contact in Ireland. Financial investigators identified assets that included three cars and a solar‑panel investment valued at more than £150,000, suggesting that Akhtar possessed enough resources to repay the loan in full, plus an uplift to reflect inflation since 2020.

Regulatory response and future implications

Alexander Grierson, head of asset recovery at the Insolvency Service, warned that “Javed Akhtar deliberately exploited a scheme designed to help genuine businesses survive the pandemic”. He added that pursuing confiscation under the Proceeds of Crime Act “is a priority”, ensuring that fraudsters cannot retain the proceeds of their dishonesty.

In August 2023 Akhtar was disqualified from acting as a company director for six years, a ban that runs until August 2029, because he failed to provide adequate accounting records.

What this case means for other dealers

The judgement underlines that Covid Bounce Back Loans remain subject to rigorous scrutiny and that fraudulent applications can lead to substantial financial penalties, confiscation orders, and director disqualifications. Dealers considering similar schemes should ensure full transparency and accurate reporting of turnover and assets.

The original story was published on Car Dealer Magazine.

What Led a Bradford Used‑Car Dealer to Repay £66,917 After Covid Bounce Back Loan Fraud?