Critics say the case highlights the welfare profligacy that grew unchecked under Labour. The new Government has promised to crack down on Britain's 'out of control' benefits bill.
During last week's emergency Budget, George Osborne announced that he would be taking tough decisions on welfare spending in an effort to save £4billion a year.
The court heard that Al-Azawi first came to Britain as a student, and went back to Iraq once she graduated.
She later returned to Britain to claim asylum, and was given income support and housed by Lambeth council in south London.
She travelled to Ireland for a brief period and claimed asylum under a different name, and was also given Irish nationality, as was her son.
In 1999, while still living in her Lambeth council home, she bought a property in Bromley.
Four years later, she purchased her council residence under the right-to-buy scheme, and in 2005 she added another Bromley home to her growing portfolio.
Although she never worked, she was able to purchase three properties - two of which she rented out - worth in excess of £1million.
Her 18-year-old son was educated at Colfe's School, in South-East London, where fees are currently £4,164 a term.