City accuses developer of permit scam
San Francisco City Attorney Dennis Herrera filed a lawsuit Thursday accusing a real estate speculator and prominent restaurateur of repeatedly doing construction work without proper permits.
The civil suit, filed in San Francisco Superior Court, claims Ashok Gujral, a 56-year-old developer and investor who has been criticized by housing advocates in the past, got permits for minor work on seven residential buildings in San Francisco and then did major renovations in violation of city law.
“If you get a permit to remodel your kitchen, it doesn’t mean you get to build a new wing onto the back of your house,” Herrera said. “Real estate scofflaws who want to earn a quick buck by flouting the law increase safety risks, endanger the character of neighborhoods and cheat honest developers by creating an uneven playing field.”
Gujral, who could not be reached for comment Thursday, bought the seven buildings between June 2015 and September 2016 and obtained permits for simple things, like plumbing upgrades or the replacement of electrical fixtures, Herrera said.
The complaint, which could bring hundreds of thousands of dollars in penalties, accuses Gujral of doing work far beyond the scope of what had been approved, saving himself permitting fees and other costs in a scheme the city said was designed to maximize profits upon resale of the buildings.
The work included the unpermitted demolition of the entire façade of a home on 903 Minnesota St., which is listed as a historic resource in the Dogpatch district. He also converted a two-unit building into a single family home, built interior stairs from the ground floor to the roof deck of another property and built decks, patios, added walls and fences in the various residences, all without permits, according to the suit.
Gujral, who co-owns the popular Indian restaurant Roti Bistro, in West Portal, attempted to legalize the work after he was caught, but even then he failed to provide all the required documents, according to the lawsuit.
It wasn’t the first time Gujral, whose wife Susan, a well-regarded designer whose work has been featured in The Chronicle, has been criticized. He came under the fire of housing advocates in 2017 after a 93-year-old resident of one of the buildings he wanted to renovate was found dead. Neighbors said the man was distraught because he was facing possible displacement. Gujral had allegedly told planning commissioners that the man expressed to him that he was willing to be relocated from the home he had lived in for more than 60 years.
The suit could bring civil penalties of up to $2,500 for each act of unfair and unlawful business competition, up to $500 daily for each violation of the San Francisco Building Code and at least $200 daily for each violation of the San Francisco Planning Code.
The lawsuit also seeks court oversight of what city officials said is Gujral’s obligation to bring his properties into compliance.
“Let this be a warning to those who think they can ignore the rules while flipping as many homes as they can,” Herrera said. “The city is not going to tolerate people trying to game the system as they look to profit off of San Francisco’s housing crisis.”