Waltham Forest Council has brought two successful prosecutions against landlords who adapted their properties without seeking appropriate planning permissions – and then refused to revert them to their original structures.

A combined sum of £421,837.89 was awarded for fines and prosecution costs in two cases under the Proceeds of Crime Act, the sum representing the profit from the committed crimes.

Mr and Mrs Khilji of Sylvester Road, Walthamstow, were successfully prosecuted after illegally converting a property on Rochdale Road, Leyton into two self-contained flats and failing to comply with an enforcement notice requiring them to return the property to its original structure. The case was initially heard at Thames Magistrates Court where the owners pleaded guilty and the case was referred to Snaresbrook Crown Court for sentencing.

The defendants were ordered to pay a total of £160,000 which included a fine of £1,000 for each defendant, costs of £18,000 and a Proceeds Of Crime Act award of £140,000.  The defendants were given 56 days to pay.

Mohammed Raja Iqbal, landlord and director of Premier Home Investments Ltd, a property company based on Hoe Street, Walthamstow, was  convicted following his failure to comply with a planning enforcement notice relating to 65 St James’s Street, Walthamstow, where he built, without planning permission, a three-story extension, and converted the upper floor to flats.

The Planning Enforcement Team served a notice calling for the demolition of the extension and reinstatement of the original two-story structure.

Iqbal did not comply with the notice, so officers took the case forward for prosecution.

Snaresbrook Crown Court ordered Iqbal to pay confiscation proceeds in the amount of £261,837.89 or face two years’ imprisonment in default of payment.

Costs were awarded in the amount of £27,174 and a fine of £20,000 was handed down.

The confiscation order, costs and the fine must be paid within three months.

Following the conviction, the ability of Premier Home Investments to act as manager or licence holder in respect of any property licence will be reviewed.

Cllr Clyde Loakes, Deputy Leader and Cabinet Member for the Environment, said:

“People who flout planning rules for their own financial gain need to understand that we will take necessary enforcement action.

“We will consider action under Proceeds of Crime Act whenever appropriate so that we take away the financial benefit of this criminal activity.”