A UK court has sentenced Rupali Wagh, a 50-year-old businesswoman of Indian origin, to two years and three months in prison for fraudulently obtaining approximately ₹2.52 crore (about £216,250) through five government-backed Covid-19 business support loans. The UK Insolvency Service is also pursuing recovery of the fraudulently obtained funds under the Proceeds of Crime Act 2002.
According to prosecutors, Wagh submitted five Bounce Back Loan applications between May and September 2020 on behalf of four companies, significantly overstating their annual turnover to secure government-backed financial assistance. Investigators allege that, instead of using the loans for legitimate business purposes, she diverted the funds to repay personal debts, invest in stocks and shares, and meet other personal financial obligations, in breach of the scheme’s conditions.
Based in Wales, Wagh pleaded guilty to five counts of fraud at Cardiff Crown Court in November last year. She was subsequently sentenced by Merthyr Tydfil Crown Court. David Snasdell, Chief Investigator at the UK Insolvency Service, said Wagh systematically exploited a scheme intended to help genuine businesses survive the Covid-19 pandemic. He alleged that she inflated company turnover figures, obtained duplicate loans for the same business from different banks, and diverted public funds for personal use.
Investigators said the first fraudulent application involved One2Four Accounting Ltd, where Wagh allegedly overstated the company’s turnover to obtain a government-backed loan. Within weeks of receiving the funds, most of the money was transferred to her personal bank account and used to repay personal debts and purchase stocks and shares.
The investigation further found that Wagh applied for the maximum loan of approximately ₹58 lakh (£50,000) on behalf of Talensetu UK Ltd, despite company records indicating that it was not actively trading. Authorities also allege that she later secured a second loan of the same amount for the same company from another bank by falsely declaring that it had not received any previous Bounce Back Loan. Most of the funds were allegedly transferred to her personal account, with more than ₹29 lakh (£25,000) subsequently sent to a bank account in India.
According to investigators, White Coconut Ltd and Indian Canteen Ltd were also used to obtain Covid support loans by allegedly providing inflated turnover figures. Authorities claim the loan proceeds were diverted for purposes other than those permitted under the government support scheme.
During interviews, Wagh initially claimed that another person who had access to her computer had submitted one of the loan applications without her knowledge. She later withdrew that explanation and admitted that she had acted alone. She also acknowledged using part of the loan proceeds to repay personal credit card balances and other private debts.
Financial crime experts associated with the Future Crime Research Foundation (FCRF) said that fraud involving pandemic relief programmes commonly involves falsified business information, misleading financial declarations, and misuse of government assistance funds. They noted that forensic analysis of banking records, corporate accounts, beneficial ownership structures, and cross-border fund transfers is critical to identifying public fund misuse and recovering fraudulently obtained assets.
