At the request of the Chair, Mr Tom Lewis, Team Leader – Licensing and Health & Safety, introduced the report which was seeking revocation of the special treatment licence for Genesis Thai Beauty Spa, Unit 2 Nagpal House, 1 Gunthorpe Street, London E1 7QX. He explained that on 13 April 2017 a petition containing 101 signatures from local residents from the Liverpool Street area was received by the Council from the Corporation of London. The petition requested that all massage premises in the area be investigated for compliance with their licence conditions.

It was noted that two test purchases had been carried out at the premises, on 15 October 2021 and 29 October 2021 and, on both occasions, services of a sexual nature were offered. Members were referred to the statements from the test purchasers detailing their account of the test purchase.

Mr Lewis informed the Committee that correspondence had been received from the Premises Licence Holder, Ms Chanita King and her Legal Representative following notification of this hearing and these were included in the supplemental agenda on pages 3-6. It was noted that the premises licence holder had requested that the Authority cancels the licence. He stated that under the London Local Authorities 1991 Act, the Council may at the request of the licence holder cancel the licence. However, it was the Licensing Authority’s view the word ‘may’ did not mean that they had to cancel the licence and given that this formal request had only been received a few days ago, Officers were of the view that the evidence contained in the report warranted the revocation of the licence and the Committee should proceed to determine the application.

Mr Lewis concluded that the Committee is recommended to revoke this licence under section 8 of the London Local Authorities (e) the premises have been or are being improperly conducted. He expressed concerns that providing services of a sexual nature can amount to prostitution and can be often linked to criminal activities such as human trafficking and exploitation of vulnerable females, and give rise to an increased risk of spreading infectious diseases. 

Finally, it was noted that due to the findings from the test purchases, the Authority were now looking to take legal action against the premises licence holder for breach of their licence.

There were no questions from Members.

There were no other interested parties present to make a representation, therefore the Chair announced that the Committee would deliberate after the meeting and the decision would be sent out in writing.

The Licensing Committee considered an application by the Licensing and Safety Team seeking the revocation of the special treatment licence held by Genesis New World Aldgate Ltd. in respect of Genesis Thai Beauty Spa, Unit 2 Nagpal House, 1 Gunthorpe Street, London, E1 (“the Premises”). The basis of the application was that two test purchases carried out in October 2021 had resulted in sexual services being offered by therapists.

The Committee was made aware that the licence holder had submitted a request to cancel the licence. The Committee was also aware of correspondence between the Licensing and Safety Team and the licence holder’s solicitor in respect of this point. The Committee was advised that it was a matter of discretion to accept the cancellation or to proceed with the hearing. The Committee proceeded as Members thought it important to hear and determine the substantive application as the outcome may be relevant in respect of any future applications by the licence holder or for a new licence at the Premises.

The Committee heard from Mr. Lewis, who outlined the test purchases and the reasons why revocation was sought. The Premises were being improperly conducted, the activity alleged was tantamount to prostitution, such offences were often linked to other criminal activity, and the perpetuation of these activities tarnished the Borough’s reputation.

The licence holder did not attend but the Committee noted the request to cancel and that the allegations were not admitted and had no bearing on the decision to request cancellation of the licence.

The Committee was satisfied as to the evidence of the test purchasers, which was in the agenda packs and which amounted to a breach of conditions 7B and 9 of the Council’s standard conditions which apply to all special treatment licences. In the absence of any representations from the licence holder (and noting in any event that she has no intention of continuing the business) the Committee was satisfied that it was appropriate to revoke the licence on the basis of section 8(c) and 8(e) of the London Local Authorities Act, namely that the persons concerned in the conduct or management of the premises could be reasonably regarded as not being fit and proper to hold such a licence, and that the premises have been or are being improperly conducted.

Accordingly, the Committee unanimously;

That the Revocation of the special treatment licence for Genesis Thai Beauty Spa, Unit 2 Nagpal House, 1 Gunthorpe Street, London, E1 7RG be GRANTED.