INDIANAPOLIS - A hot spot known as El Infierno on the city’s west side could lose their liquor license after allowing a promoter to use the club for adult entertainment and to sell alcohol after normal business hours.
Police are seeing a growing trend among business owners who are renting out their liquor permits. The businesses run as restaurants during the day, but become night clubs at midnight.
A group known as Queen of Diamonds rented out El Infierno in the 4000 block of North High School Road earlier this year.
The group advertised nights of drinking and dancing starting at 3 a.m., even though it is against state law to serve alcohol past that time.
The law states that only one liquor license is allowed per business and only the people named on the documentation can use the license.
It is also a violation of the law for owners who hold a liquor license to allow a third party to use their permit to serve alcohol.
“What we’re finding with bars getting permitted with one name and actually when we go out there, people don’t know who the owner is,” said Sgt. William Carter with the Indianapolis Metropolitan Police Department.
County zoning rules ban adult entertainment on the club's block because a neighborhood is 500 feet away, but that did not stop organizers from including half-naked dancers at the club from March to May 26.
El Infierno isn’t the only club to put its liquor permit in jeopardy.
The owners of the Early Bird Pancake House & Grill found themselves in trouble with regulators after allowing someone to rent their space and use their liquor permit. 83 underage teenagers were ticketed after the incident.
The owners of El Infierno must now explain why they should not lose their liquor license.