A construction company director has been banned from running any businesses after he was found selling classic cars worth £100,000 for just £1.
Kulbarg Singh, from Staffordshire, has received a six-year ban from running any business after transferring company property worth £1.5million for less than £500,000 to another firm under his control.
The 62-year-old orchestrated the undervalued sale while heading Aldridge Construction Engineering Ltd, with the transaction completed in 2021 to Ace Earth Solutions Ltd, where he also served as director.
The deal included vintage vehicles valued at £101,500 that changed hands for merely £1, contributing to the company's eventual collapse with debts exceeding £1.5 million owed to creditors.
GETTY/PA
|The man was accused of selling expensive classic cars for just £1
The vintage automobiles comprised two Daimler vehicles manufactured in 1936 and 1965, a pair of Jaguars dating from 1969 and 1978, plus three Rolls-Royce models produced during the 1970s.
Despite their collective valuation of £101,500, Singh transferred ownership of all seven classic cars to Ace Earth Solutions Ltd for a single pound.
The vehicles formed part of a broader asset transfer scheme that saw property worth a minimum of £1.5 million change hands for approximately £465,000.
The controversial business move represented a loss exceeding £1million for the original company.
CAR AND CLASSIC |
The director sold at least £1.5 million of company assets in total (stock image)
Singh established Aldridge Construction Engineering Ltd in November 2015, initially focusing on road resurfacing before expanding into gas pipe installation work.
The businessman held directorial positions at both firms involved in the controversial transaction, having joined Ace Earth Solutions Ltd as a director from February 2020 until April 2022.
Following the April 2021 asset transfer, Aldridge Construction Engineering Ltd became insolvent and entered liquidation in June 2022 without any remaining assets.
The company's collapse left HM Revenue and Customs alongside various other creditors facing combined losses exceeding £1.5 million, with no resources available for repayment.
Kevin Read, Chief Investigator at the Insolvency Service, commented on the damning decision regarding Singh's business future.
He said: "Kulbarg Singh deliberately sold assets worth £1.5million for much less than they were worth, putting the money out of the reach of creditors.
"Directors who abuse their position will face serious consequences.
"Selling historic cars worth over £100,000 for just £1 shows the extent of Singh's misconduct."
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Singh has been banned from being a director of a company for six years (stock image)
The prohibition order commenced on 24 July, barring Singh from participating in company promotion, establishment or management without court approval until 2031.
The Official Receiver continues investigating potential recovery proceedings to recoup funds for affected creditors who suffered losses from the undervalued transactions.
The Secretary of State for Business and Trade, Jonathan Reynolds, accepted the disqualification undertaking from Singh as part of the procedure.