There is more than one way, albeit illegal, through which a bar licence holder, especially those located in star hotels or clubs, can make money.
Operating beyond permitted hours and turning a Nelson’s eye to possible use of drugs are known to general public but police found out that leasing out the operation of bar is another illegal way for licence holders to make a quick buck.
After the raid by sleuths of Task Force on the bar at Radisson Blu Plaza hotel in Banjara Hills a few days ago, investigators began examining minute details of the case, having seized a few packets of cocaine on its premises.
Inquiries indicated that some private persons had entered into an agreement of lease of the bar, though its licence was on the name of Sunil Joshi.
“This is clearly illegal. Without permission of the Prohibition and Excise Commissioner, the licence (including special permission of serving liquor round-the-clock) cannot be transferred or leased out to anyone,” an excise officer clarified.
The officer, unwilling to be named, observed that the bar raided by the TF police was not the only one which was being operated by persons other than the licence holders. There are several such places in and around Hyderabad being run in violation of the licence conditions.
For example, a star hotel management secures bar licence by paying the specified fee. There is a slab system of bar licence fee, which is proportionate to the space of the bar area. After getting the bar licence, the person can secure add-on licences to run more bars in the same complex based on the main licence.
The licence holder can operate more than one bar in that complex, club or building with different themes. “There would be a bar and restaurant for family, a pub to attract youngsters and another with a unique theme in the same complex, building, club or so-called star hotel,” the officer explained.
But, these licence holders are leasing out the bar premises to others who pay a goodwill amount and run the bars or pubs. In Country Club at Begumpet, three pubs with the names of Lisbon, Purple and High Five were operated earlier, though they were eventually closed following raids over charges of violations of rules.
While the excise officials categorically stated that the licence holder cannot transfer or lease out the bar to anyone, inquiries by police indicated that many such places were being leased out. “Instances of sub-lease are also coming to our notice,” the investigators said.
The original licence holder pays a specific sum to the government and in turn, apparently collects more than that amount from the lease holders. Having ‘invested huge sums’ for taking the bars on lease, the bar operators depend on different means like running the place beyond permitted hours, and ignoring use of drugs to make profits.
