Property on Avda. Joan Miró, one of a number with basement substandard accommodation. | Pilar Pellicer

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The Balearic housing ministry has imposed a fine of 2,040,068 euros on the company run by a Palma police officer for the renting-out of substandard homes. These were converted storage units in basements in properties in areas of Palma such as Gomila and Foners.

The ministry's fine is the largest it has ever issued and is higher than the total of all fines handed out over the past five years. Under Balearic housing law, the police officer's activity represented a "very serious infraction" subject to a fine, on an individual property basis, of between 30,000 and 90,000 euros. The ministry identified 68 properties in all.

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The company has as yet not presented an appeal for reconsideration of the fine, which it is entitled to. The ministry's notification was made last month, and as well as the appeal for reconsideration, there is a right of appeal to the courts, which has to be lodged within two months.

Following a complaint by the ministry, the officer was arrested by the National Police in November. Since then, tenants have stopped paying rents, and the company is now seeking to evict them for non-payment. This would also be in compliance with the ministry's report, as the properties are unfit for habitation.