Fraud charges have been dropped against a millionaire dentist who used a dead person’s disabled badge on his Ferrari.

Dr Chirag Patel, 33, had earlier admitted two charges of unlawful use of the blue badge on December 8 and 9, 2009, outside the Putney branch of his Perfect Smile cosmetic dentists practice.

But on the morning of his trial for fraud at South West London Magistrates’ Court today, Wandsworth Borough Council dropped the fraud charges, which could have led to a sentence of five years in prison.

Dr Patel, who lives in a £2m house in Coombe Lane West, Kingston, had always denied he was committing fraud when he used the badge, and unsuccessfully tried to get the case against him thrown out at an earlier hearing.

Announcing the decision today, prosecutor Paul Jarvis said: "That decision has nothing whatsoever to do with the council’s assessment of the strength of the evidence against Dr Patel and nor has it been influenced by the defendant’s wealth and status."

He said: "Dr Patel has already pleaded guilty to two offences of misusing a blue badge. He will have to live with the consequences of his actions and no doubt if he had his time again he would have done things differently."

The court heard angry patients of Dr Patel had sent him "disparaging" and "vilifying" emails describing him as a skinflint and a miser.

Dr Patel could have temporarily transferred the permit he was lawfully paying for from his Bentley to his new Ferrari by a phone call to the council, the court heard.

Instead he used a badge belonging to his father’s former business partner, Virendra Patel, who died in 2008, on six occasions, two of which were filmed by council investigators.

Defending Edward Henry said Dr Patel apologised unreservedly to Wandsworth Borough Council and “even to those who sent him unfortunate letters and emails”.

He said: “He offers an explanation which to you and me in the cold light of day seems quite absurd but at the time knowing he had paid for a permit and believing he had to go the council offices in person he made a very serious error or judgement and he has paid dearly for it already.”

Dr Patel’s business had also suffered financially from the adverse publicity caused by the case.

He said in the run-up to Christmas 2009 Dr Patel’s mother-in-law had a terminal illness which she later died from.

District Judge Barnes dismissed the fraud charges against him and said: “I do consider that this is a serious offence."

Dr Patel was ordered to pay £700 for each of the offences and also prosecution costs of £784, as well as a £15 victim surcharge. He offered to pay the total bill immediately by credit card.

His lawyer, Riz Majid of solicitors Neumans, speaking on the steps of the court near Clapham Junction after the case, reiterated that Dr Patel apologised unreservedly for using the blue badge.