Indian-origin businessman banned from company directorship over ‘under-priced’ car sales

An Indian-origin businessman who sold seven historic cars, including two Jaguars and three Rolls-Royces, for just GBP 1 to another company he controlled has been disqualified from holding a company directorship for six years following an investigation by the UK’s Insolvency Service.

Kulbarg Singh from Staffordshire in the West Midlands region of England was the director of Aldridge Construction Engineering Ltd when he entered into an asset purchase agreement with Ace Earth Solutions Ltd in 2021.

According to the Insolvency Service this week, at least GBP 1.5 million of company assets were sold, with Aldridge Construction Engineering Ltd entering liquidation the following year.

Among the “under-priced sales” identified in the probe were two Daimlers from 1936 and 1965, Jaguars from 1969 and 1978, and three Rolls-Royces from the 1970s. Combined, the seven cars are said to be valued at around GBP 101,500, but the 62-year-old businessman sold them to Ace Earth Solutions Ltd for just GBP 1.

“Kulbarg Singh deliberately sold assets worth GBP 1.5 million for much less than they were worth, putting the money out of the reach of creditors,” said Kevin Read, Chief Investigator at the Insolvency Service.

“Directors who abuse their position will face serious consequences. Selling historic cars worth over GBP 100,000 for just GBP 1 shows the extent of Singh’s misconduct. Singh’s six-year disqualification sends a clear message that we will pursue those who breach their responsibilities as a director,” he said.

The Insolvency Service is a UK government agency charged with tackling financial wrongdoing to maximise returns to creditors. The Official Receiver, as liquidator of Aldridge Construction Engineering Ltd, is said to be currently exploring options to pursue recovery action to return money to creditors who lost out as a result of the under-priced sales.

The UK Secretary of State for Business and Trade, Jonathan Reynolds, accepted a disqualification undertaking from Singh, with his directorship ban starting on July 24. It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.

According to official information, Aldridge Construction Engineering Ltd was set up in November 2015 as a company that claimed to be involved with resurfacing of roads and later installing gas pipes.

“In April 2021, Singh sold company assets worth at least GBP 1.5 million for just more than GBP 465,000 to Ace Earth Solutions Ltd, a company he was director of between February 2020 and April 2022. The sale resulted in Aldridge Construction Engineering Ltd losing more than GBP 1 million, leaving it insolvent,” the Insolvency Service said.

“By the time the company went into liquidation in June 2022, it had no assets and total liabilities to HM Revenue and Customs and other companies of more than GBP 1.5 million,” it added.

Under the disqualification undertaking, Singh cannot direct any company until July 2031.