Tax dodging landlords jailed

Posted: 17/2/2020


A pair of fraudsters who bought and sold over 50 properties but failed to pay nearly £1 million in tax, have been jailed for more than eight years.

Madhu Bhajanehatti, 45, of London and Himat Chana, 59, of Ilford, Essex, sold dozens of properties over an eight-year period, and evaded £991,000 in Capital Gains Tax.

“Although the men disclosed some income on their Self-Assessment tax returns, they deliberately hid the sales of properties across London and Essex, a HM Revenue and Customs (HMRC) investigation revealed.

HMRC officers discovered the men had built up their property portfolios by using the proceeds of previous sales. The scam was uncovered by a property taskforce set up to tackle fraud in the industry.

Bhajanehatti evaded £650,000 in tax and Chana evaded £341,000. Bhajanehatti admitted the fraud during a hearing at Southwark Crown Court in June 2019. Chana was convicted after trial in August 2019, and on 17th January 2020, the men were sentenced at the same court to a combined total of eight years and six months in jail.

  • Bhajanehatti was sentenced to 50 months in jail
  • Chana was sentenced to 52 months in jail

Bhajanehatti was also ordered to pay back £190,086.42 in a confiscation order. He has less than three months to pay it back or he faces a further two years and six months in jail.

Confiscation proceedings for Chana are ongoing. If further assets are identified in the future for Bhajanehatti, they could also be confiscated. 


Back to News

 Click here for a competitive quote for Landlords Insurance  property-ombudsman NI Tourism Certified Accommodation to Rent