2 weeks Ago
Gurugram: Gurugram’s taverns—commonly known as ahatas—were originally meant to be small, enclosed drinking spaces adjacent to liquor vends, allowing customers to drink in a controlled setting. The concept was introduced to curb public drinking on roadsides, ensuring that consumption of alcohol remained restricted to designated areas. But these establishments have now illegally expanded into multi-storied bars and nightclubs.
Instead of enclosed areas next to liquor vends, they have transformed into lavishly designed spaces with lounges and dance floors. Many of these ahatas operate without the necessary permits, nor do they comply with building safety regulations. They are equipped with elaborate décor, neon lighting and high-end sound systems, offering services that rival well-established nightclubs.
Some even have dedicated stages for live music performances, attracting a crowd that would typically frequent high-end pubs. The shift from small drinking spaces to entertainment hubs has not only eroded the distinction between licenced bars and ahatas but also led to severe violations of Haryana’s Excise Policy 2024-25. Adding to the regulatory concerns, these taverns have also introduced hookah services, despite the Haryana government’s ban on flavoured hookah.
The presence of foreign artists on tourist visas further complicates the issue. A visit to one such ahata in Sector 29 revealed that the establishment had two foreign dancers performing live, while another in DLF Phase 3 was hosting an international DJ event. None of these performers had the required work permits, which constitutes a violation of Indian visa regulations.
Massive financial losses to state A month-long investigation by Hindustan Times, covering over 20 taverns across Gurugram, has exposed violations that have resulted in massive financial losses for the state, amounting to several crores of rupees each month. These establishments, have now illegally expanded into rooftop venues and full-fledged nightclubs. One glaring example is an ahata at Signature Tower, which advertises itself as a “BYOB lounge” but operates like a full-fledged pub, complete with DJ nights, live bands and VIP booths.
The entry fee (cover charge) ranges from ₹ 1,500 to ₹ 10,000, which is comparable to licenced bars and clubs, yet these venues do not pay the necessary excise fees or taxes applicable to bars. Another example is a tavern on Golf Course Road, which has been illegally operating across multiple floors, featuring private dining sections, high-end alcohol offerings, and exclusive VIP access. Liquor is served openly, even though ahatas are only permitted to allow customers to consume their own legally purchased alcohol from an adjacent vend.
Despite multiple complaints by residents and business owners regarding noise pollution, public safety concerns and unfair competition, the Haryana Excise Department has failed to act. Police crackdown and excise action Deputy superintendent of police Inderjeet Yadav of the chief minister’s flying squad said that law enforcement teams regularly conduct surprise raids at these taverns and have arrested staff members serving hookah, despite its ban in Haryana. “We have done multiple raids and have arrested over 20 people in the past few months who were found serving hookah in these ahatas.
The raids have also been conducted for running these establishments beyond permissible timings,” he said. Amit Bhatia, deputy excise and taxation commissioner (DETC), confirmed that several outlets have been sealed for illegal operations. “We penalize them, seal the outlets, and take action whenever we receive complaints or our teams find violations during surprise checks,” he said.
Bhatia said they had sealed one of the ahatas on Golf Course Extension Road last week after a case was registered for serving hookah. Vijay Singh Malik, collector, excise department, said that the department strictly follows the rulebook and has taken action against multiple operators violating the excise policy. “We will conduct further meetings and review violations.
Anyone found operating against the rules will face strict action,” he warned. Running without valid restaurant licences Adding to the issue, these taverns have also transformed into full-scale restaurants, offering diverse cuisines. Unlike proper restaurants that are required to follow strict food safety regulations, these ahatas do not have valid restaurant licences, fire safety clearances, or health department approvals.
Many taverns have also started organising food festivals and live cooking events, further blurring the line between regulated dining establishments and illegal liquor consumption zones. A recent food festival at an ahata on Golf Course Road drew hundreds of customers, yet the establishment did not have any licences to serve multi-cuisine, nor was it following food safety protocols mandated by the Food Safety and Standards Authority of India (FSSAI). Since many of these taverns operate without proper kitchen hygiene checks, food storage standards, or waste disposal mechanisms, they are potential hotspots for food-borne illnesses.
Health department officials have warned that unsanitary cooking conditions, use of expired ingredients, and lack of refrigeration facilities could lead to major public health hazards. Foreign artists on tourist visas A major concern uncovered in the investigation is the presence of foreign performers, including dancers and international DJs, working illegally in these taverns. Performing on tourist visas is strictly prohibited under Indian immigration laws, yet these taverns host regular live music and dance performances without obtaining the necessary work permits.
Many of these performances are heavily advertised on social media platforms, drawing large crowds. A senior police official, speaking on condition of anonymity, expressed concern over the exploitation of foreign performers. “These artists do not have valid work permits, and in many cases, they are being underpaid and exploited.
Some of them are promised high wages but end up receiving a fraction of what was agreed upon. Many are also misled about the nature of their work and find themselves in situations where they have no legal protection. This is a serious violation of labour laws and could amount to human trafficking,” he said.
Increased security concerns The presence of foreign performers in unregulated settings has also raised security concerns. Law enforcement officials worry that these events, operating outside legal framework, are creating high-risk environments where illegal activities may be taking place unnoticed. Some taverns operate well beyond legal hours, serving alcohol past the permissible limit and hosting performances without the required permissions from authorities.
“These events often take place in crowded, unsafe venues that do not meet fire safety standards, making them potential death traps in case of emergencies. Many of these performers are not officially registered with the government, making it difficult to track their whereabouts in case of legal or safety issues,” the official added. Tax evasion One of the biggest revelations as part of the investigation is the large-scale tax evasion taking place at these taverns.
Unlike licenced bars and nightclubs (L-4 licensees), which are required to pay VAT at 18.9% on liquor sales, taverns (L-52 licensees) charge no VAT on alcohol, making them a tax-free haven for liquor sales. For instance, a full bottle of Black Dog whisky, which costs ₹ 16,000 in a licenced bar where VAT at 18.
9 % is included (approximately ₹ 2,500), is sold for just ₹ 1,200 at liquor vend adjacent to taverns, with no VAT being paid to the government. This means that on every bottle sold, the state is losing over ₹ 2,500 in tax revenue. Advocate Rajeev Yadav, who has filed complaints regarding tax evasion, pointed out that for high-end imported liquor, the losses are even greater, sometimes exceeding ₹ 2,500 per bottle.
The tax evasion extends beyond alcohol. Taverns, which have expanded into full-scale restaurants, charge 5% GST on food but underreport sales to avoid depositing the full amount to the government. Many transactions are conducted entirely in cash, with no receipts issued, allowing taverns to erase records of sales.
Yadav said the scam is much bigger than the Delhi excise policy scam or the Haryana 2020 liquor scam in which recovered stock of liquor in temporary warehouses was looted in Sonipat during the Covid-19 lockdown. Adding to financial irregularities, taverns impose cover fees ranging from ₹ 1,500 to ₹ 3,000 per person on weekends when they host live performances. Legally, cover charges are subject to 18% GST, but taverns never deposit this tax, leading to additional revenue losses for the government.
With hundreds of customers visiting taverns each weekend, undeclared revenue runs into crores annually. Regulatory failures Despite Haryana’s Excise Policy 2024-25 clearly stating that taverns must operate in a confined and enclosed space, many continue to run sprawling outdoor seating areas, rooftop lounges, and multi-level establishments. Excise officials conduct annual site inspections before granting licences, yet these illegal expansions continue to remain unchecked.
A senior excise official, requesting anonymity, admitted that lax enforcement has allowed these violations to persist. “The government needs to clearly differentiate between licenced bars and taverns,” he said. Officials from the Excise department also confirmed that new restrictions were introduced in June 2024 to prevent taverns from operating across multiple floors.
However, several taverns continue to flout these rules, raising concerns about administrative inefficiency or corruption. For now, Gurugram’s taverns remain a booming, unregulated industry—operating outside the law, while authorities look the other way..
