Landlords who crammed up to 40 migrants inside their semi-detached townhouse face losing hundreds of thousands pounds, a court heard.

Harsha Shah, 53, her daughter Chandni, 27, and brother-in-law Sanjay, 54, rented out their four-bedroom property through an agent who at one point managed 40 Indian migrants living there.

For over five years the Shah family, together with agent Jaydipkumar Valand, 42, were paid between £40 and £75 per week in cash by the tenants for rent and to have food delivered because the kitchen was unusable.

Inside the Wembley home, fire exits were blocked and tenants were living in bunk beds in the garden shed surrounded by sacks of rice, Harrow Crown Court heard.

The 1920s property, rented for £6,000-a-month, was divided into seven bedrooms on the ground floor, two on the first floor.

The court heard tenants were crammed five-to-a-room in bunkbeds and shared just two bathrooms and one kitchen between them.

The landlords made around £360,000 but the local authority are now fighting to get the money back, as they are not liable for a rent recovery or a confiscation order.

Landlords crammed 40 migrants into suburban semi: in pictures Show all 5 1 /5 Landlords crammed 40 migrants into suburban semi: in pictures Landlords crammed 40 migrants into suburban semi: in pictures For over five years the Shah family, together with agent Jaydipkumar Valand, were paid between £40 and £75 per week in cash by the tenants for rent in the cramped conditions. Brent Council / SWNS.com Landlords crammed 40 migrants into suburban semi: in pictures Sanjay Shah rented his four bedroom property through an agent who at one point managed 40 Indian migrants and poor Londoners living there. Brent Council / SWNS.com Landlords crammed 40 migrants into suburban semi: in pictures Some tenants stayed in a shack stuck on the side of the house in Wembley Brent Council / SWNS.com Landlords crammed 40 migrants into suburban semi: in pictures The landlord provided beds for tenants surrounded by sacks of rice in the shack. Brent Council / SWNS.com Landlords crammed 40 migrants into suburban semi: in pictures Some of the conditions inside the house. Brent Council / SWNS.com

The court was told the Shahs had a licence to rent to one family, but did not have permission to run a house of multiple occupancy.

They also allowed the property to fall into disrepair and refused to manage its upkeep as large holes appeared in the ceilings, the court heard.

The Shah family and Valand were convicted in May but Sanjay Shah tried unsuccessfully to have his conviction overturned at the High Court.

The family and the agent faced a confiscation hearing to have the money earned through the illegal practice seized.

Edmund Robb, on behalf of Brent Borough Council, told Recorder Stephen Rubin QC the council can only claim back any housing benefit paid, but under the proceeds of crime act the rent paid can also be seized.

He added Brent Council are yet to make a decision on the exact amount they wish to obtain from the defendants.

Following a trial at Willesden Magistrates Court, the Shah family was found guilty of failing to have a multi-occupancy licence while Sanjay Shah was also found guilty of aiding and abetting.

Cameron Scott, acting for Harsha and her daughter Chandni Shah, argued taking the rent from the migrants was not an offence, and therefore a confiscation order was not enforceable.

He said: "We say that receiving the rent is not a criminal offence and neither is continuing the tenancy.

"They are clearly in breach of the law, but the receiving of rent was not illegal."

The confiscation hearing is due to continue at a later date and Recorder Rubin will reserve his judgement on whether a proceeds of crime order can be enforced.

The Shah family and Valand are to be sentenced at a later date.