Former Bankrupt Fined And Sentenced Following MBIE Investigation

• Vikkram Maan sentenced to 6 months’ home detention.
• Convicted of managing a business without consent under the Insolvency Act 2006.
• Ordered to pay $24,200 in reparations to his victims.

A former bankrupt has been sentenced to 6 months home detention and ordered to pay reparations following an investigation by the Ministry of Business, Innovation and Employment’s (MBIE) Integrity and Enforcement Team.

36-year-old Vikkram Maan of Goodwood Heights, Auckland has been convicted of carrying on the management or control of a business without consent under the Insolvency Act 2006 (The Act). The conviction relates to his involvement in managing three companies while an undischarged bankrupt.

Mr Maan pleaded guilty at the Manukau District Court and was sentenced to 6 months’ home detention and ordered to pay reparations of $24,200 to his victims, including $10,000 for emotional harm.

The court ordered that Mr Maan pay $14,200 to two couples ($11,200 and $3,000 respectively) that had booked wedding receptions which did not go ahead at the D’ Grand Haveli in Auckland during the time that Mr Maan was involved in the management of the event management company, with each couple also to receive $2,000 each for the emotional harm caused by Mr Maan.

Mr Maan was also ordered to pay $3,000 to the landlord of the Admiral Arms Hotel in Coromandel for the emotional harm caused by Mr Maan failing to pay suppliers, rates and insurance which put the business at risk. A further $3,000 is to be paid to the landlord of the Whitianga Hotel where Mr Maan had previously owed a significant sum of rent arrears.

Commenting on the case, Manager of MBIE’s Integrity and Enforcement Team, Vanessa Cook said:

“There is a fair and effective insolvency process in New Zealand which the vast majority of individuals participate honestly in, ensuring they are able to resolve their financial situations and resume their normal economic lives.”

“Mr Maan chose not to cooperate with this process. As an adjudicated bankrupt, he was prohibited from being involved in managing a business without seeking and obtaining permission from the Official Assignee or Court. Despite being aware of his obligation, he chose to ignore this restriction.”

“His actions meant that enforcement action had to be taken and MBIE’s Integrity and Enforcement team will not hesitate to investigate and prosecute individuals acting in this manner in order to protect the public from financial risk.”

Details of the case:

Following investigations by MBIE’s Integrity and Enforcement Team, Mr Maan was found to have breached the Insolvency Act in the following manner:

• While a bankrupt, carrying on the management or control of a business without the consent of the Assignee or Court as required by the Insolvency Act 2006.
  • Mr Maan was an undischarged bankrupt from 29 August 2019 until he was discharged from the register on 29 August 2022.
  • In breach of his obligations as a bankrupt, during the period of his bankruptcy, Mr Maan managed or controlled the business of SK Hospitality Limited.
  • In breach of his obligations as a bankrupt, during the period of his bankruptcy Mr Maan managed or controlled the business of SK Admirals Arms Hotel Limited, trading as the “Admiral Arms Hotel.”
  • In breach of his obligations as a bankrupt, during the period of his bankruptcy Mr Maan managed or controlled the business of Afree Limited, trading as the “Whitianga Hotel.”
  • At no time did Mr Maan seek or obtain the consent of the Assignee or Court in respect of his involvement in any of the businesses set out above.

Notes to Editor:

• The Insolvency and Trustee Service (ITS) is a business unit of the Ministry of Business, Innovation and Employment. ITS is also called the Official Assignee’s Office.
• The Official Assignee administers bankruptcies and liquidations by collecting and selling assets to repay creditors. The Official Assignee will ask the bankrupt or company director(s) for information to help them identify and deal with the assets. The money recovered is paid to creditors who have made a claim. The order in which payments are made is set out in the relevant Acts.
• The Insolvency and Trustee Service administers the Insolvency Act 2006 including breaches of the Act. MBIE’s Integrity and Enforcement Team investigates complaints under the Act and take actions where appropriate. Full details of MBIE’s Compliance and Enforcement guidelines are available here.

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