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A block of flats in east London worth millions must be torn down, and its "rogue” developer must cough up £700,000, because the homes were built without planning permission.

Hackney Council revealed on Monday how builder’s firm Garland Development Ltd and its director Yusuf Sarodia were first ordered to cough up £700,000 in August, while Sarodia was told to knock down the flats back in 2011.

But he failed to demolish the Stanway Street building, which is yards from Hoxton Overground station, and was hauled back before judges in November.

There he was given a fine on top of the eyewatering confiscation order – which Hackney believes is “one of the biggest ever handed down for a planning crime”.

He must hand over the rent made from tenants at the block – which has now been emptied, but is still standing.

Hackney Council’s regeneration boss Cllr Guy Nicholson said: “Anyone who thinks they have a right to build a property in Hackney without first obtaining planning permission must realise that the council will take action against those who flout the rules.

“Putting up a building without planning permission is not only breaching planning law but to be quite frank puts at risk the safety of residents and neighbouring properties.”

Hackney Council will receive a third of the £700,000 when it is paid, with the rest to be split between the court and the treasury.

“Money received by the council will be reinvested back into the services that brought the developer to justice,” a spokesman explained.

“At present, Garland and Sarodia have yet to demolish the property. The council will consider further enforcement if action is not taken.”