An Indian-origin property developer has been banned as an organization director for 13 years within the UK after his firm was discovered to have misused investor funds raised in the direction of constructing scholar lodging within the south-west England metropolis of Bristol.
Sanjiv Varma, a director of Grosvenor Property Developments, collected greater than 7.7 million kilos from buyers between February 2017 and January 2018 together with fellow director, Jonathan England, who has been disqualified for 12 years.
The scholar lodging was by no means accomplished by the corporate and buyers utilized for the liquidation of the corporate in November 2018. Enquiries by the Insolvency Service discovered that Varma, 57, used a minimum of 1.Three million kilos to fund journey, presents and designer clothes.
“Sanjiv Varma and Jonathan England fabricated an extensive renovation project to create student accommodation in Bristol, taking large deposits from investors with the promise of a high quality asset,” mentioned Karen Maxwell, Deputy Chief Investigator on the Insolvency Service.
“Instead, Sanjiv Varma took millions from the company and Jonathan England did nothing to stop his co-director from spending their funds on international flights and designer clothing. Both have now been disqualified as company directors for a significant time period,” she mentioned.
Grosvenor Property Developers was wound-up in courtroom on November 14, 2018, and the Official Receiver was appointed as liquidator, which triggered investigations into the conduct of the administrators of the property agency.
Enquiries established that funds had been diverted into accounts belonging to or corporations linked to Sanjiv Varma and that 3.1 million kilos was paid to a different firm in Dubai additionally owned by the director.
Investigators additionally discovered that planning permission for the scholar housing was by no means utilized for and titles to the property had been by no means acquired by Grosvenor Property Developers.
In their undertakings to the federal government, the 2 administrators didn’t dispute that they precipitated and/or allowed Grosvenor Property Developers Ltd to misappropriate investor deposits of greater than 6.5 million kilos.
Both their bans are efficient from 22 February 2021 and the pair are banned from straight or not directly turning into concerned, with out the permission of the courtroom, within the promotion, formation or administration of an organization, the Insolvency Service mentioned.
Disqualification undertakings are the executive equal of a disqualification order however don’t contain courtroom proceedings.
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