London Landlord Ordered to Pay £330,000 Penalty for Illegal Flats

17 July 2012 Categories: News

London Landlord Ordered to Pay £330,000 Penalty for Illegal Flats

In a landmark case last week, landlord Vispasp Sarkari was ordered to pay a total of £328,515 in penalties and fees after Brent and Harrow councils brought a joint prosecution against him.

Sarkari, from Harrow in London, had amassed a property portfolio worth £1.8million pounds however four of his properties had been illegally converted into 28 flats.

The two joining councils used new laws to prosecute Sarkari, namely the Proceeds of Crime Act, which allows much larger fines to be imposed than the Town and Country Planning Act.

Consequently Sarkari was ordered to pay £330,000 based on the predicted rental amount he had collected from the properties since 2005, £7,515 for breaching planning regulations and £18,000 for legal costs – bringing the total to the largest fine ever imposed on a landlord inBritain.

Keith Ferry from Harrowcouncil said “I am delighted that we have been able to send out a clear message that we will not allow people to profit from illegal conversions.

“This landlord ignored planning rules designed to ensure that the quality of accommodation in the boroughs is maintained and that the environment for surrounding residents is protected.

“He ignored the council’s notices. As a result, he profited hugely from this sub-standard accommodation.”