Council secures £1.44m penalty under Proceeds of Crime Act against overseas property owner after unlawful conversion of house into flats

The London Borough of Ealing has obtained a £1.44m penalty under the Proceeds of Crime Act after an overseas property owner broke planning rules and then refused to comply with enforcement action.

Ali Bahbahani, of no fixed address, was ordered to pay £1,283,444 for converting the home in Ealing into flats, including an extension.

The defendant then failed to comply with orders to cease the use and demolish the unauthorised extensions.

Ealing secured the confiscation order under the Proceeds of Crime Act because Bahbahani then profited illegally from renting the flats.

The defendant failed to appear for his conviction at Isleworth Crown Court on 25 January. As part of the confiscation order, the council will be recovering more than £16,000 in unpaid council tax and business rate bills.

Ealing said that over the last 10 years it had issued multiple court applications to have the property restored to its original condition. The case was heard before a number of courts before being concluded at Isleworth Crown Court in January.

The council said that it was revealed during court proceedings that someone impersonating Bahbahani had attended the initial hearings, adding to the delay.

Justin Morley, Ealing’s head of legal services, said: “This is a quite remarkable case, given the size of the confiscation order. It reflects not only the time and hard work that officers invested in this case, but also the commitment to go through the proper legal channels.”

The council is working with the management receiver, appointed by the court, to recover all its costs.

Cllr Shital Manro, Ealing’s cabinet member for good growth and new housing, said: “This was a flagrant abuse of the planning system. You must make sure you have planning permission for major changes of any sort to your property. Failure to do so will result in court action and, as we have seen, can be very costly.”

Ealing said the property had now been bought by a new owner and the council was working with them to resolve the illegal building works that were carried out on the property.