New UK curbs on bankrupt Punjaborigin excouncillor

British authorities have extended bankruptcy restrictions on former councillor Gurpal Singh Atwal,who disposed of land in the East Midlands and in India, and transferred the proceeds to family members instead of paying his creditors.

The Insolvency Service said on Tuesday that Leicester-based Atwal, 47, is a self-employed driver and former councillor of Oadby and Wigston Borough Council who had declared himself bankrupt in November 2017.

But investigators found after the bankruptcy order, he transferred land worth £600,000 that he owned in India to family members, and gifted them £86,410 from the sale of his property in Leicester.

“Gurpal Atwal ought to have been aware that he should not have made these transfers as he would have been notified of the restrictions he was entering into on the making of the bankruptcy order,” the service said.

Atwal himself received no payment, which meant his creditors received no benefit from the property transfers despite having a claim.

As a result of the investigation, Atwal had his bankruptcy restrictions extended to nine years. The period during which he isn’t allowed to carry out certain activities, such as borrowing more than £500 without first disclosing his status, was also extended.

Gerard O’Hare of the Insolvency Service said: “Mr Atwal, on two separate occasions, whilst insolvent, cynically disposed of assets to his relatives.” HTC

LONDON: