Watan could face a fine of well over £100,000 for illegal workers after it was visited by Immigration Enforcement on Tuesday (July 29).
A video shows men being led out of the back of the Pakistani and Afghan restaurant in Ilford Lane following the raid.
A Pakistani national and two Afghan nationals were arrested. They have been released on immigration bail.
Watan was issued a civil penalty notice.
Civil penalty notices include a fine of up to £45,000 per illegal worker for a first breach and up to a maximum of £60,000 for repeat offending.
A Home Office spokesperson said: “Illegal working undermines honest employers, undercuts local wages, and fuels the criminal industry of immigration crime.
“This government is determined to clamp down on that illegal activity in every sector where it occurs, including restaurants.
“Since coming to power, enforcement action nationwide has increased, with raids, arrests and fines all up by around 50% on the previous twelve months, and we will be stepping up that action further in the year ahead.”
