If you have any dealings in the property industry, you might have heard the name Siddharth Mahajan. It is often connected with the idea of the unethical landlord and illegal properties. But just how accurate is this depiction?
The Siddharth Mahajan property case is much more complicated than the version portrayed both in the press and in the rumours swirling around online. Let’s have a closer look at the case and find out more about what really happened and why.
Who is Siddharth Mahajan?
Siddharth Mahajan is a real estate entrepreneur and the owner of Tulip Hotels and Real Estate Ltd. He was accused of forging documents and not complying with the UK regulations regarding the status and use of Houses in Multiple Occupation, also known as HMOs. But the facts of the case are disputed by Siddharth Mahajan. He claims that he broke no laws and forged no documents.
Mr. Mahajan comes from a background in hospitality, completing his degree in Hotel Management from the Oriental School of Hotel Management. He worked for several years in his native India before making the move to London. He started his business with the aim of catering for travellers looking for a little bit of home when abroad.
His empire soon grew to more than 50 properties, all offering accommodation to people visiting the UK for long periods.
What is an HMO?
Siddharth Mahajan then had the idea to let the different rooms in his properties on an individual basis. The idea was based on the concept of a serviced apartment, targeting corporate visitors and overseas students. This concept grew to incorporate all 57 of his properties, some in his name and others in the name of his business, Tulip Hotels.
HMOs are common across the UK but they require a different set of licences to other rental properties. Any investor planning on converting a building to HMO status needs to do so in accordance with the law. Speak to your local council to find out more.
The case
In 2015, Mahajan received a notice from Barking and Dagenham Borough in East London. The notice claimed that three of the properties Siddharth Mahajan was renting out were illegal as they did not have the correct licences.
Siddharth disagreed and said that all properties had the correct licences and that he had not been informed about the change in licencing nature for HMOs. He claimed that his licences were granted in 2014, after the period when the new licences should have been required. The council informed him that there were two departments dealing with the licencing, but they still alleged that he had broken the law and sought prosecution against him.
Siddharth Mahajan was advised not to speak about the pending case, even though there were multiple allegations against him in the public sphere. He claimed he was being made a scapegoat for someone else’s errors. In total, 18 charges were levelled against him but only two were actually carried forward. The remaining charges were dropped due to lack of evidence, and Siddharth Mahajan claims the remaining two are also false.
The Trial
During the three-week trial, the local authority claimed the three properties in question were transformed into six-room HMOs without the appropriate licensing. They also accused Mahajan of not submitting the required plans for changes to the council. He protested that if there was such a law requiring him to submit these plans then authorities ought to have informed him of the same during the license application procedure.
Mahajan claimed the properties had been in use for more than 10 years as HMOs. This would make them immune from enforcement action. He submitted evidence including tenancy agreements and sworn affidavits from tenants. However, the Special Investigations Team found that the documents were forgeries and the affidavits were also false.
The verdict
In January 2019, a jury at Snaresbrook Crown Court found Mahajan guilty. This was on two counts of perverting the course of justice and a further three counts of using forged documents. The judge then passed a sentence of eight months imprisonment on each conviction to run concurrently. That meant a total of sixteen months.
Speaking about the verdict, HH Judge Gordon said Siddharth Mahajan hade ‘planned sophisticated criminal activity over a lengthy period.’ He added that he was motivated ‘solely by greed.’ But Siddharth Mahajan disputed both these assessments and the guilty verdict. He has appealed the convictions.
Speaking about the case after the verdict, Councillor Mullane, Cabinet Member for Environment and Community Safety said: ‘This case shows Barking and Dagenham Council’s absolute determination to protect our residents from rogue landlords who put profit before people.’
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