The operation of an ILLEGAL KITCHEN EXTRACTOR results in a £ 2.5 million MONEY LAUNDERING charge.

A London restaurant faces a £2.5 million 'proceeds of crime' fine over a kitchen fan installed without council permission.

Case Summary: Meze Mangal and the £2.5 Million POCA Penalty

Background

• Business: Meze Mangal, a long-established Turkish restaurant in Lewisham, London.
• Owners: Brothers Ahmet and Sahin Gok.
• Issue: In 2014, the restaurant installed a £50,000 kitchen extractor fan to address neighbour complaints about cooking smells. However, the installation required planning permission due to the restaurant’s location in a conservation area.
• Planning Breach: The Goks applied for permission, were refused, and left the extractor in place, believing it was the right thing to do for community relations.

Legal Escalation

• Council Action: Lewisham Council began enforcement proceedings after the brothers failed to remove the extractor post-appeal in 2019.
• Court Proceedings: The brothers missed a court hearing in 2023 due to family illness and were convicted in absentia.
• POCA Application: The council pursued a Proceeds of Crime Act prosecution, arguing the restaurant PROFITED ILLEGALLY while in breach of planning laws.
• Penalty: An initial £2.5 million confiscation order was issued, though this may be reduced on appeal.

Additional Measures

• Passports Seized: The brothers were deemed flight risks.
• Bank Account Frozen: Their business operations were severely impacted.
• Fundraising: Over £13,000 has been raised via crowdfunding to support their legal fight.

COMMENTARY: WHY THIS CASE MATTERS

1. Unprecedented Use of POCA

• This case is notable for the unusual application of POCA, a law typically reserved for serious organised crime against a small business over a planning breach.
• It raises questions about proportionality and regulatory overreach.

2. Planning Enforcement as Criminal Prosecution

• The escalation from a planning dispute to a criminal financial penalty illustrates how non-compliance, even if well-intentioned, can lead to severe consequences when due process is not followed.

3. Compliance Lessons

• Always obtain and comply with planning permissions, especially in conservation areas.
• Engage proactively with enforcement authorities; delays or missed hearings can escalate matters.
• Document all communications and decisions to support your case if challenged.

4. Reputational and Operational Risk

The freezing of business assets and seizure of passports shows how regulatory action can cripple operations, even before a final judgment is reached.

HOW THE STORY WAS REPORTED IN THE NEWS - LONG READ:-

London restaurant faces £2.5million 'proceeds of crime' fine over kitchen fan installed without council permission.

Brothers Ahmet and Sahin Gok had their passports seized and face a £ 2.5 million penalty for installing a kitchen extraction system without obtaining planning permission.

• The family-run London restaurant is facing a £2.5million “proceeds of crime” penalty after installing a kitchen extraction fan against council planning rules.
• Meze Mangal, an award-winning Turkish eatery in Lewisham that has been open for more than 20 years, said it spent £50,000 on the fan system in 2014 after a complaint from a neighbour about cooking smells wafting into their home.
• But owners Ahmet and Sahin Gok did not get planning permission for the small support structure at the back of the restaurant needed for the ventilation.

Lewisham Council opened an investigation and claimed

• The brothers said they would take out the extraction system “once their planning appeal had been dismissed” in 2019.

However, the owners said

• The fan “alleviated the complaints and solved the issue” with neighbours, so it was not removed, prompting the local authority to begin court action.

In 2020, they were informed that the case had been dropped, only to be reopened later. Three years after that, they failed to attend a court hearing, which they said was because of the medical needs of their ill father, who later died, and were convicted in their absence.

By not attending court, the town hall pursued a proceeds of crime prosecution, a law typically used to target serious organised crime, such as drug dealers and money launderers.

• It allows the council to seize the profits the restaurant made while it has been in breach of planning laws.
• This figure was initially calculated to be £2.5million, but could be reduced during an appeal.

The Gok brothers:-

• Who came to London in the 1980s from their native north Turkey, said they were also deemed a “flight risk”
• Had their passports seized and
• Business bank account frozen.
• Have now started an online fundraising campaign to fight the case, raising over £13,000 in less than a week.

Sahin Gok said:

• “Every single donation, message of encouragement, and act of support has given us hope, strength, and renewed determination during this incredibly challenging time...
• “As we continue this fight, what we need now is pressure on Lewisham Council to drop the POCA charges against us.”

A Lewisham Council spokesman told the Standard that.

• The court ordered the confiscation of the passports “because the defendants did not turn up at the hearing” and it had “no involvement” in that aspect of the case.
• The £2.5million penalty was “guided by the rules set out in the Proceeds of Crime Act” and not by the council.

The spokesman added:

• “We always try to resolve cases informally, and prosecution is an absolute last resort.
• “This has been a long-running case since neighbours complained about the smoke, noise and smells from the restaurant before 2018.
• “In 2019, the restaurant owners said they would remove the extraction system once their planning appeal had been dismissed.
• “However, the restaurant continues to operate with the illegal extractor eight years after this case was opened.
• “Had the extraction system been removed at any point during that time, then no further action would have been necessary.
• “We are open to working with the restaurant to resolve the planning breach.
• Last month, we conducted a site inspection with the owners and provided advice on the steps required to implement a new system.
• “The Proceeds of Crime Act has arisen because they have been found guilty by the court of a criminal offence.
• “Our priority now is to ensure this matter is resolved as quickly as possible, and we remain committed to working with the restaurant owners.”

Source

https://www.standard.co.uk/news/politics/meze-mangal-london-lewisham-restaurant-kitchen-fan-council-planning-rules-b1251616.html