A pair of restaurants owned by the same prominent Whitby businessman were raided by immigration enforcement officers on Wednesday evening.
Both Kam Thai on Church Street and Passage to India on Windsor Terrace were visited by agents from the Home Office, with one man arrested for alleged offences.
Leeds man Michael Bary was eating at Kam Thai, when eight enforcement officers arrived.
He said: “They came through the front door and one of them shot off to the back of the restaurant to seal the premises.”
Both restaurants are owned by businessman Kamal Hussain.
While diners continued their meals, the immigration officers gathered all the staff in the restaurant and examined their official papers.
Mr Bary added: “They discussed the papers in front of everyone in the restaurant.
“It caused embarrassment, not only for the restaurant owners, but for the workers as well.
“If they’re there illegally then embarrassment doesn’t come into it, but if it’s all legal then I think that’s a little bit unfair.”
Following the investigations, a 20-year-old Bangladeshi man, working at Passage to India, was detained and interviewed further.