The story deepens for the two Masala Restaurant owners convicted last week of immigration and exploitation charges.

Joti Jain and Rajwinder Grewal side-stepped a seven year prison term last week - their sentencing resulted in home detention and community service work.

But its now evident Insolvency Group Waterstone are suing the duo for more than half a million dollars.

It's alleged the two replicated companies which have previously been liquidated (phoenix companies) and breached director duties under the Companies Act 93'.

General Manager Steven Khov said they're liquidating Bucklands Beach Limited, CHK Limited, Stanmore Bay Limited AK Group 2006 Limited, CK Investments 2013 Limited and CK Hospitality Limited, all of which Jain and Grewal directed.

He said their blatant disregard for the law, in particular the Companies Act is the worst he's seen.

Following the immigration and exploitation charges Masala Restaurants began changing names. Bucklands Beach Masala Restaurant is now trading as Salt Indian, the Titirangi Masala as Mint and the Birkenhead Masala as Chili.

However it could not be confirmed if the restaurants had been sold or re-branded. In a statement to The New Zealand Herald Joti Jain said "I do not want to comment on anything okay, that's enough what I said".