Harsha Shah, 53, her brother-in-law Sanjay, 54, and her daughter Chandni, 27, worked with agent Jaydipkumar Valand, 42, to illegally undertake multiple tenancies at the 1920 property which they also let fall into a state of disrepair, a UK court was told this week.
The house, described as a "slum", was divided into seven bedrooms on the ground floor, two on the first floor and crammed with as many as five people per room for rents between 40 and 75 pounds per week, the Harrow Crown Court was told.
The occupants had just two bathrooms to share among them and the fire exits were all blocked, causing a safety hazard.
While the Shah family and Mr Valand were convicted in May last year, they are now fighting against having to hand over nearly 360,000 pounds obtained as rent during the course of the tenancy at a confiscation hearing at the court.
Edmund Robb, appearing on behalf of the local Brent Borough Council, told Judge Stephen Rubin that besides claiming back any housing benefits paid out by the authority, the rent paid can also be seized under the UK's proceeds of crime act.
However, the defence argued that taking rent from the migrants was not an offence, and therefore, a confiscation order was not enforceable.
"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," said lawyer Cameron Scott.
Judge Rubin will reserve his judgement on whether a proceeds of crime order can be enforced.
Meanwhile, following a trial at Willesden Magistrates Court last year, the Shah family were found guilty of not having proper licence and will be sentenced at a later date.