Licensees to Pay $1.2 Million Penalty for Undisclosed Interests

Consent Order

TRENTON – The Division of Alcoholic Beverage Control (“Division”) announced today that it has reached an agreement with six licensees, with interests held by three individuals associated with the Buy Rite liquor franchise. This agreement resolves charges for violations of the law that limits the number of plenary retail licenses that may be held by an individual.

The retail licensees withdrew their not guilty pleas and entered pleas of non vult, or no contest, and agreed to penalties for substantial and serious undisclosed interests in violation of the two-license limitation in Title 33 of the Alcoholic Beverage Control Act. New Jersey law requires all individuals or entities with an interest in a liquor license to be disclosed and approved. This rule exists to ensure ownership transparency,  prevent illegal activities, and to ensure accountability and fairness in New Jersey’s alcoholic beverage industry.

The corporate entities that hold these licenses agreed to pay penalties totaling $1.2 million. The penalties were imposed in lieu of the six licenses being suspended for periods ranging from 150 to 210 days.

“Holding a liquor license carries certain requirements in exchange for the business of selling alcohol. Being truthful about who has a direct or indirect interest in the license is one of those requirements,” said Attorney General Platkin. “Our regulations prevent monopolistic practices and create a level playing field, and my office will always demand accountability from those who violate our alcoholic beverage control laws.”

“Fair trade practices are key to ensuring a stable, proper, and lawful alcohol industry in New Jersey,” said Kirstin L. Krueger, Interim Director of the Division. “While I’m pleased that this case was settled, the state’s licensees should know that the Division will not tolerate this type of business practice.”

These undisclosed interests arose through the joint management of the six licensed establishments by Bathena Holding Company, LLC. An ABC investigation found that the three individuals, who each have a direct ownership in two licenses, impermissibly acquired interests in more than two licenses by virtue of the operation of this management company and financial entanglements, in violation of Title 33.

 The licenses subject to the Consent Order are as follows:

Under the terms of the Consent Order, Vimalakar Bathena agreed to sell his interest in license numbers 1103-32-011-009 and 1202-32-001-011. Both licenses shall be sold and transferred to bona fide third-party buyers via person-to-person transfer and not by corporate structure change.

In addition, Vimalaker Bathena and Bathena Holdingare prohibited from providing management services to or on behalf of any other liquor license in which they do not have a direct and disclosed interest.

However, under the existing franchise agreements with Bathena Holding, the remaining retail liquor licensees are permitted to continue their use of the Buy Rite name.

A sixth store, Union City Liquors LLC t/a Buy Rite of Union City (license number 0910-32-171-012) transferred the license during settlement negotiations with the Division. As part of the agreement, the Division’s case against this license shall be closed.

The Division’s enforcement action was handled by Enforcement Bureau Chief Sheena Kelley and DAG Jessica Saxon. The investigation was conducted by Investigators Anthony Bowen and Kaitlin Lupinacci under the direction of Investigations Chief Kevin Barber.

For more information about licensing requirements and other procedures, visit the Publications page of the Division.

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