A Wallsend corner shop has been stripped of its alcohol licence following the discovery of around £25,000 of illegal tobacco and suspected cash proceeds in the flat above.
North Tyneside Council’s licensing committee removed Malhotra Off Licence’s alcohol permit after a raid by Northumbria Police and Trading Standards in March this year. The search of the flat above the shop, located on Coast Road, uncovered tens of thousands of pounds worth of illegal tobacco, including rolling tobacco and cigarettes, alongside £1,800 in cash believed to be from illicit sales.
Trading Standards officers informed the committee there had been concerns about illegal tobacco sales at the premises, also known as Drinks Express, dating back to 2018. In 2022, the shop was issued a warning letter after a packet of cigarettes was sold to a 15-year-old volunteer. Since then, further reports of illegal tobacco sales continued, culminating in the search and subsequent three-month closure order earlier this year.
It was estimated that around £15,508 of duty had been avoided on the tobacco discovered. Northumbria Police, Trading Standards, and the council’s director of public health, Louise Gray, all supported the revocation of the shop’s ability to sell alcohol.
Owner Mr Shahid Ali told the committee he intended to sell the business and move on but implored the councillors to merely suspend the licence to help with a future sale. Mr Ali also stated he was happy for the police to vet prospective new management who could run the shop in the interim and to have no role in running the shop.
Mr Ali said: “I am well aware of the seriousness of the situation I am in and what detrimental effects have been caused to my business and family life, and for the suffering caused to my two children. My sole purpose is to sell and vacate the premises, I have a debt of £22,000 to the landlord which is increasing by £250 a week and a £15,000 council tax bill.”
The police’s written representations stated: “The persistent poor management of the premises is of serious concern. Due to the serious nature of this review, the consistent disregard and for persistently storing and selling illegal/counterfeit tobacco and cigarettes, Northumbria Police request the licensing committee to consider revocation of the premises licence, even in the first instance.”
Following a brief deliberation, the committee revoked the premises’ licence to sell alcohol.
