Landlords who illegally modified their properties to fit in more tenants will now have to pay back hundreds of thousands of pounds of their profits.
One landlord, also the director of a Hoe Street property company, built a huge three-storey extension without planning permission and refused to knock it down.
And a couple who acted as landlords for a Leyton property were prosecuted for converting the premises into two self-contained flats and failing to change it back when warned.
Snaresbrook Crown Court order them to pay a collective total of £374,663.89 in profits, fines and prosecution costs, part of which went to Waltham Forest Council.
Deputy leader Cllr Clyde Loakes 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.”
Mr Mohammed Raja Iqbal, director of Premier Home Investments Ltd on Hoe Street, was convicted after building an illegal extension at 65 St James’s Street, Walthamstow.
The planning enforcement team ordered him to demolish the extension, which he had rented out as flats on the top floor.
Mr Iqbal was taken to Snaresbrook Crown Court after failing to do so, where he was ordered to pay £261,837.89 within three months or face two years in jail.
Premier Home Investments may also no longer be able to act as manager or licence holder for any properties, pending a council review.
Illegal flat conversion
Mr and Mrs Khilji, of Sylvester Road in Walthamstow, were taken to court after splitting a property on Rochdale Road in Leyton into two flats.
They failed to comply with an enforcement notice ordering them to return the home to its original structure.
On July 24, Snaresbrook Crown Court ordered them to pay a total of £180,000, including a £1,000 fine each, within 56 days.