Hackney developer ordered to pay £700,000 for illegal block of flats

Wednesday, December 16th, 2015 - Hackney Council

A private developer who defied planning law to build an illegal six-storey block of flats has been ordered to pay a UK record-breaking sum for a planning offence.

The owner of the block of 34 private rented flats illegally benefited from the use of the property that was built without planning permission.

Garland Development Limited, and the company’s sole director Yusuf Sarodia, were sentenced in November 2015 for the offence of failing to demolish the property, located in Hackney’s Hoxton area, after Hackeny Council served an enforcement notice in August 2011.

As part of the case, the Council made an application to the Crown Court to confiscate money illegally made from the building under the Proceeds of Crime Act. In August this year the Court made a confiscation order in the sum of £700,000.

The confiscation order is believed to be one of the biggest ever handed down for a planning offence. The Council will receive one third of this with the other two thirds split between the Court and the Treasury. Money received by the Council will be reinvested back into the services that brought the developer to justice.

At present, Garland and Sarodia have yet to demolish the property. The Council will consider further enforcement if action is not taken.

Cllr Guy Nicholson, Cabinet Member for Regeneration, Hackney Council said:

Anyone who thinks they have a right to build a property in Hackney without first obtaining planning permission must realise that the Council will take action against those who flout the rules.

Putting up a building without planning permission is not only breaching planning law but to be quite frank puts at risk the safety of residents and neighbouring properties“.