UNDERGROUND hiding places were used to supply a six-year £100,000 illicit cigarettes racket, a court heard.

Husband and wife Arshad Mahmood and Rehana Iqbal have been handed 15-month and four-month suspended prison sentences respectively by a Burnley Crown Court judge after an operation by Lancashire Trading Standards.

Stashes were created under the floorboards of their shop, M&M, in Athol Street South, Burnley, and the family home in Colne Road, Brierfield.

And when consumer watchdogs raided the home, they found £17,000 in their son Mehran Arshad’s bedroom, and another £17,125 belonging to Iqbal was also discovered, the court heard.

Jack Troup, prosecuting, said that later more than £61,000 was found spread across four bank accounts operated by Iqbal.

He told the court the shop had failed a number of test purchase operations, for selling packs of cigarettes without health warnings, before a raid in August 2017.

Mr Troup said Mahmood was caught red-handed handing over a bag to a customer containing 13 packs of illicit cigarettes and four pouches of untaxed hand-rolling tobacco, with a price of £93.50 showing on a nearby till.

Trading standards officers, who eventually uncovered 1,374 packs of cigarettes and tobacco, found a hiding place underneath floorboards in a back room at the shop.

Another 820 packs of cigarettes were seized, again hidden under floorboards, in a cupboard under the stairs at the family home, the court heard.

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Mahmood and Iqbal, who each admitted to tobacco supply offences and money laundering offences, must perform 200 and 150 hours' community service respectively, with £6,723 court costs to pay between them.

Their son Mehran was alleged to be responsible for ensuring supplies were delivered to the shop as needed.

He pleaded guilty to similar offences and was given 120 hours community service with £500 costs. Highgaze Ltd, Mahmood’s company, was fined £650 for related offences.

Judge Andrew Woolman ordered Mahmood and Iqbal to forfeit £72,042 between them and Arshad was told to surrender £17,850.