Vijay Madhaparia, a London-based builder, has been jailed for 27 months after falsifying documents from UK tax authorities and also banned from running limited companies for 10 years, the Insolvency Service said on Thursday.
Madhaparia, 44, was director of Laxmi Development Limited, a building development company incorporated in 2010 based out of northwest London. The company was placed into compulsory liquidation in 2015 after it failed to pay the tax authorities a debt of £124,000, which was later revised to £4.4million.
The service said the official receiver was initially appointed as liquidator and further investigations uncovered several instances of misconduct by Madhaparia. In 2012, he was disqualified by the court for three years after committing health and safety offences.
However, despite being disqualified, he continued to act as a director and took on various construction and development projects until the company was dissolved in September 2013 after the company had failed to file company records.
To get the company reinstated, Madhaparia submitted company accounts in breach of his disqualification, which he falsely claimed had been audited and prepared by regulated accountants.
Further enquiries uncovered that Madhaparia had taken on two renovation contracts in 2015 despite the company having been wound up, and he did so without informing the official receiver.
The service said that Madhaparia then proceeded to siphon £91,000 worth of payments for the renovation works into his personal account, which he spent on holidays and gambling, depriving his creditors of payment.
Judge Dafna Spiro of the Harrow Crown Court described his conduct as “a sustained, deliberate and repeated pattern of calculated deliberate deceit and dishonesty committed over a number of years”.
Ian West, chief investigator for the Insolvency Service, said, “Vijay Madhaparia has been jailed for a significant amount of time after the court recognised the severity of his numerous misconduct offences.”