A CORNER shop could close after the man running it defrauded out of nearly £50,000.

Harendra Patel, 31, sub postmaster at Hitesh General Store and Newsagent in Berechurch Road, Colchester, has been jailed for seven months for the scam.

He used £47,337 of Post Office funds to pay for an overdraft and mortgage on a property in London.

He admitted fraud by false representation when he appeared at Chelmsford Crown Court.

The court was told the store may have to close because there is nobody to run it.

Doris Reid, who lives a few doors away and suffers from lung cancer, relies on the shop for essentials.

She said: “The mother and father have been there for a long time and they are lovely and don’t deserve to have a bad name and haven’t done anything wrong.

“When the post office reopened, he was so excited and I am really surprised it has happened.

“It would be very sad to see the shop go, because so many people use it and people like me need it.”

Another neighbour, who asked not to be named, said: “It is terrible news. It is a very good and very useful shop and I use it a lot. I am very surprised.”

Dave Harris, borough councillor for Berechuch, who has known the family for many years, said: “I just hope the shop does not have to close.

“We value our corner shop and I am just shocked about what happened, it is a real shame for everyone.”

Ellis Sareen, Royal Mail prosecutor, said investigators went in on October 11 last year and discovered Patel had inflated the figures for how much cash he had on the premises.

The shortfall was £47,337, which his father had since repaid.

Mr Sareen said: “It was not a sophisticated offence and was discovered very quickly.

“It’s not entirely clear Patel was not intending to pay it back.”

Houzia Rawat, mitigating, said the court case had had a huge impact on Patel and his family. It has particularly affected his father who set up the business more than 30 years ago.

Mr Rawat said: “Not only is his son facing a potential custodial sentence, but there’s the loss of what’s been a family business.

“Nobody will be able to run that business in his absence.

“Even in the short term, customers will go elsewhere.”

Judge Rodger Hayward Smith QC said it was unfortunate if the business closed, but the offence was too serious for a suspended prison sentence.