Bailiffs employed by the council attempted to take the tables and chairs out of a restaurant which had refused to pay a controversial business levy this morning.

Shah Ahmed, owner of the Star of India in High Road, Leytonstone was one of 33 traders who refused to hand over cash to E11 Bid Company despite being handed liability orders, ordering them to pay up at Waltham Forest Magistrates Court in May.

This morning at 10am bailiffs contracted by Waltham Forest council attended the restaurant and after initially refusing Mr Ahmed was forced to pay £835, which included legal fees.

In 2007 business premises in E11 opted to pay a levy to a private company rather than the usual business rates to the council.

The levy cost Mr Ahmed £90 a year and the money collected would then be used to improve the look of the area and attract more trade.

Waltham Forest council is responsible for collecting the levy but Mr Ahmed hit back at them for ‘hiding’ behind the private company.

He said: “It was really intimidating and we have no choice but to pay up, even though the E11 Bid are not giving us the services for our money.

“I am lucky that I can pay the bill but for other small businesses in the area it will be devastating. I have heard they are turning up to people’s homes to reclaim money.

“It is simply unacceptable and unethical. How is a small business supposed to prosper if bailiffs are coming here to take tables and chairs?”

The restaurateur is also the chairman of the Leytonstone Festival.

The community-led celebration was unsuccessful in gaining council funding for the first time this year and faces a £15,000 shortfall.

Mr Ahmed said: “The E11 Bid could have stepped in and offered £5,000 towards it, it is exactly the kind of event they should be promoting. It brought loads of people into the area but we had to fundraise the difference ourselves."

The company has been plagued by financial mismanagement over a number of years but is said to be back on track by chairman Fawad Sheikh who maintained May's court case result “reinforces the validity” of the company.

Before the case, the private company was found to be around £80,000 in debt despite collecting a levy totalling £65,000 a year from 300 businesses since 2008 and receiving public funds from the council.

The Indian restaurant owner finished: “It will take years to pay off the debt before we can see any changes to the high street.

“We still don’t know what they actually do with the money. The only contact we get with the E11 Bid is when the bailiffs turn up.”

Waltham Forest council have been approached for comment.