A West Midlands property developer and lettings agent has received a 22-month suspended prison sentence after fraudulently obtaining Covid-19 business support loans totalling £125,000.
Harjinder Singh, 44, of Stonnall Road, Aldridge, was sentenced at Birmingham Crown Court on 12 May after making false declarations to secure funding he was not entitled to through government-backed pandemic relief schemes.
Multiple fraudulent applications
Singh initially obtained a legitimate £20,000 Bounce Back Loan for HP Property (International) Ltd in May 2020. The following month, he applied to a second bank for an additional £30,000 Bounce Back Loan, falsely declaring it was his first application under the scheme.
In October 2020, Singh applied for a £95,000 Coronavirus Business Interruption Loan, a separate government scheme designed to help small and medium-sized businesses manage disrupted cashflow during the pandemic. Under the scheme’s rules, applicants were required to disclose and repay any outstanding Bounce Back Loans using the new funding.
Singh disclosed only the first £20,000 loan, which was repaid as required, but failed to declare the fraudulent £30,000 loan, allowing him to retain those funds.
Company liquidation and director ban
HP Property (International) Ltd, which was established in January 2016 and operated as a residential property developer and letting agent, entered compulsory liquidation in November 2021 after the business interruption loan lender took court action to recover outstanding debts.
In addition to the suspended prison sentence, Singh was disqualified from acting as a company director for seven years, ordered to complete 200 hours of unpaid work, and 20 days of rehabilitation activities.
During an interview with the Insolvency Service, Singh acknowledged that his application for the £30,000 Bounce Back Loan violated the scheme’s rules, stating he had not read the terms and conditions and saying “we just clicked it”.
David Snasdell, Chief Investigator at the Insolvency Service, said: “Harjinder Singh exploited Covid support schemes that were created in good faith to help businesses survive one of the most difficult periods in recent memory. He made deliberate false declarations across two separate applications to keep money he had no right to.”
Implications for the sector
The case highlights ongoing enforcement action against property professionals who misused pandemic support schemes. The Insolvency Service is seeking to recover the fraudulently obtained funds under the Proceeds of Crime Act 2002.
The conviction comes as the lettings sector continues to face scrutiny over business practices, with recent data showing private tenants spending 36% of income on rent, placing pressure on both tenants and agents operating in the market.
Snasdell added: “The Insolvency Service remains committed to ensuring that Covid fraudsters face the consequences of their actions.”
