A government minister has urged a London council not to revoke the licence of a celebrated Indian restaurant facing closure after an immigration raid uncovered illegal workers.
Udaya, which has operated for over a quarter of a century in East Ham, received a £180,000 fine when four people with no right to work in the UK were found employed there last June.
The Home Office also applied to Newham Council to revoke the restaurant's licence to sell alcohol, open late and play music, with the hearing due on Monday.
But Sir Stephen Timms, a minister in the Department for Work and Pensions, said he had been assured that the failure to complete adequate right-to-work checks "was not deliberate" and the business is a "well-regarded part of Newham’s diverse food scene".
The restaurant, under previous owners, has catered the East Ham MP’s silver wedding anniversary party in 2011 and he said he has visited “on many occasions and always been impressed by the professionalism” of the team.
In a letter to the council's licensing committee on behalf of restaurant owner Prajeesh Kumar, Sir Stephen said: “I understand that the Home Office is seeking to revoke the restaurant’s premises licence following a civil penalty issued last year for employing individuals without the right to work in the UK.
“Mr Kumar has accepted responsibility for this breach and has taken significant steps to ensure full compliance in future, including verified right-to-work checks, staff training, and internal audits. This is a first offence. I am assured that it was not deliberate.
“Since then, the business has cooperated fully with the authorities and has already paid a substantial portion of the £180,000 penalty.
“Udaya is a well-regarded part of Newham’s diverse food scene. It serves a wide customer base and contributes positively to the local economy and community.
“I have visited the restaurant myself on many occasions and have always been impressed by the professionalism and care shown by the team.
“I hope the [committee] will take into account the steps the business has taken to rectify its mistake, the serious consequences that revoking the licence would have for its future, and the loss that would be suffered by the local community. Thank you for your help.”
Fines for firms caught employing people without the right to work in Britain have been increased to £45,000 per employee and £60,000 for repeat offences as part of a Government crackdown.
The Home Office is also increasingly applying for hospitality firms and shops to have their licences reviewed and revoked if caught hiring illegal workers.
But the Government has faced criticism for targeting independent businesses when delivery apps, such as Deliveroo, Uber Eats and Just Eat, do not face fines when drivers are discovered working illegally.
In documents discussed by Newham Council on Monday, Mr Kumar said revoking Udaya’s licence would “almost certainly result in permanent closure” after the £180,000 fine put a significant “financial burden” on the business.
The restaurant opened in 1999 and has become popular with TikTok food influencers in recent years for its authentic Keralan food.
Mr Kumar said: “Udaya Kerala Restaurant is more than just a business - it is a valued part of the borough’s cultural and economic fabric.
“We have served a diverse customer base for over 26 years and have become a beloved local hub for families, professionals, and visitors from across London and beyond.”
He added: “The breach that had occurred was unintentional and not a wilful disregard for the law…Not only has the penalty severely impacted our cash flow but has also forced us to delay necessary improvements within the business.
“We have been under immense pressure on meeting staff wages and supplier obligations. Despite these difficulties we have prioritised prompt payment to the Home Office.”
A Home Office spokesperson said: “Illegal working undermines honest employers, undercuts local wages, and fuels the criminal industry of immigration crime.
“We are determined to clamp down on that illegal activity in every sector where it occurs, including in restaurants.
“Since coming to power, enforcement action nationwide has increased, with raids, arrests and fines all up by around 50% on the previous twelve months, and we will be stepping up that action further in the year ahead.”
