A Banstead restaurateur has been fined £5,000 after not getting the proper license for tenants above his restaurant.

Mr Steven Chiu, 51, was illegally allowing tenants to live above his Chinese restaurant, The Lotus Room, in Banstead High Street.

He was prosecuted by Reigate and Banstead Borough Council under the Housing Act 2004 for operating a House in Multiple Occupation (HMO) without a licence.

Mr Chiu, of Chatsworth Road, Cheam, pleaded guilty at Redhill Magistrates Court on Thursday, March 25, 2010 and was fined £5,000, with £150 costs.

Environmental Health Officers and officers from Surrey Fire and Rescue Service had visited the premises before, but were always told no-one was living there.

On each occasion they were told that staff left their belongings in the flat but only stayed there on an ad hoc basis.

After an unannounced inspection, council officers found this was not the case.

Councillor Mike Miller, executive member for planning, transport and housing, said: “The licensing of certain houses in multiple occupation is required by law to ensure that a minimum standard of basic amenities and of fire safety is provided in this kind of accommodation for the benefit and safety of tenants.

"Putting tenants’ lives at risk by avoiding the requirements is simply not acceptable.”