A Bradford councillor has resigned from chairing a key committee after being prosecuted over the “appalling condition” of flats his company rents out.

Rizwan Malik is one of two directors of Premier Housing (Bradford) Limited, who along with the company itself, were fined a total of £34,000 by the courts earlier this year, after being prosecuted over the state of two properties in Liverpool.

In addition Coun Malik, who has represented Heaton for the Labour party since 2007, was until recently the chairman of Bradford Council’s housing and non-domestic rates appeal panel. He has now resigned the post and his membership of the panel. He is also under investigation by the Labour group over the prosecution.

The company is registered to Princeville Road, Bradford, which Coun Malik lists as his address with the Council. It has been renting out properties for 20 years and currently has flats in Bradford, Leeds, Halifax and Liverpool.

In fact a flat in one of the properties that netted the company a massive fine – 19 Laburnum Road in Liverpool – is still listed for rent at £75 a week on the firm’s website.

Liverpool Council took the legal action against Premier Housing (Bradford) under Houses in Multiple Occupation legislation which is intended to protect tenants from unscrupulous landlords.

The landlord was prosecuted over 41/43 Holt Road, Liverpool, for eight offences under HMO management regulations and for “appalling and dangerous conditions” found at the property.

The company was fined £8,000 with costs to pay of £1,480. In addition two directors, Coun Malik and Usman Haroon Malik, were each fined a total of £4,000 and ordered to pay costs each of £1,300.

The charges described the flats above a shop as rat-infested and poorly-converted. The fire alarm system was not working and communal areas were poorly maintained, including the staircase, kitchen, bathroom and windows, which were in disrepair.

Electricity to power the lighting to the common parts was actually taken from the pre-pay meters supplying one of the flats. There were electrical defects and gas work was not done by a registered engineer.

The following month the company appeared in court again for six similar offences relating to the Laburnum Road flats. It was fined £9,000 with costs of £1,200. Two of the directors were again fined £4,500 each and told to pay costs of £1,200.

The property was in a similar state of disrepair to the one at Holt Road, with no working fire alarm system, significant electrical defects, cracked windows, some of which had been nailed shut, water supply problems to half of the flats and significant health and safety hazards were also found.

Bradford Council was able to confirm that it had never had any reason to prosecute the firm over its properties in the district.

Coun Malik, who is in his early 30s, declined to comment on the matter, but Labour group leader and leader of the Council, Councillor Ian Greenwood, said: “We take such matters very seriously. The chief whip will be undertaking an investigation of the matter and will be interviewing Councillor Malik. It would be inappropriate to comment further.”