A Lancaster Indian restaurant could lose its premises licence as thousands of pounds of penalties relating to the use of illegal workers remains unpaid.
Immigration officials from the Home Office found people working illegally at Bombay Balti in China Street in various visits since 2015.
More than £76,000 remains unpaid from a total £85,000 in civil penalties owed by companies which have owned the restaurant between those visits and now, due to what the Home Office call ‘phoenixism’, where companies are deliberately liquidated to avoid punishment.
In a report into a licence review to be discussed by Lancaster City Council later this week, Home Office officials state that they want councillors to revoke the premises licence, as in their opinion, other measures, such as additional conditions or a suspension, would not be enough to act as a deterrent.
The report states: “We have grounds to believe the licence holder has failed to meet objectives to prevent crime and disorder, as illegal working has been identified.
‘’Immigration enforcement staff visited the restaurant four times between 2015 and 2025. On each visit, they encountered a number of individuals who were identified as working illegally.
“Bombay Balti has a history of employing illegal workers and, consequently, civil penalties were issued to the liable party.
‘’All previous civil penalties remain unpaid. Evidence suggests the business has engaged in ‘phoenixism’, by liquidating previous companies and reopening in a new identity to evade financial sanctions, continuing with non-compliant activity under the control of the same connected persons.”
The first penalty of £10,000 was issued in 2015 to Naz Enterprise (Lancs) Ltd, relating to the employment of an individual with no right to work. The company objected but the penalty was maintained and £8,200 remains unpaid.
In 2019, a £20,000 penalty was issued to the same company for another illegal worker. No objection was received but it remains unpaid. That company was dissolved in 2022.
in 2021, a £10,000 penalty was issued to Bombay Balti Lancaster Ltd for another similar case. No objection was received but £3,100 remains unpaid. That company was dissolved in 2024.
Last year, a £45,000 penalty was issued to Asha1Lancaster Ltd, for the same reason. No objection was received but the penalty is unpaid. The company has been in liquidation since summer 2025.
The restaurant’s premises licence is currently held by Nazrul Islam Khan, of Torrisholme Road, Lancaster, and Zakia-El-Mahni, who according to documents have both been told of the review, and can make a submission if they wish to do so.
Sanctions available to Lancaster City Council include modifying the conditions of the licence, excluding a licensable activity from the scope of the licence, removing the designated premises supervisor, suspending the licence for a period not exceeding three months, revoking the licence, or taking no action.
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