'Deadline is our biggest issue'

Shetty and Sarpotdar get frank as they talk about early deadlines, burden of entertainment tax, liquor licences, security measures and other issues concerning hospitality industry

Ganesh Shetty has been the president of 'Pune Restaurant and Hoteliers Association' (PRHA) for a year and a half now. He also owns the famous Kalinga Restaurant at Karve Road. Kishore Sarpotdar runs the very popular Poona Guest House built in 1936 by writer, actor, and filmmaker Narhar Damodar alias Nanasaheb Sarpotdar. They talk to MiD DAY about various issues plaguing the hotel industry in the city.

Deadlines have become a major issue with hotels and restaurants. How challenging is it to run the business with the current deadline?
Shetty: It is indeed a big issue and we have been losing out on business. The IT professionals come to our restaurants around 11 pm and our attendants have to ask them to place their final order as well as their drinks the moment they enter. When they refuse, the situation becomes very dicey and the customers get offended. The city commissioner says that we can wind up by 12.30 am but licence mentions the deadline as 11.30 pm. The local police officials come and ask us to close. We lose those customers because of this. The gazette mentions that we can keep our places open till 12.30 am but there is a rider that says that the hoteliers have to apply individually. This is again a long process and is equivalent of applying for a fresh licence. The
restriction is only in Pune. Cities like Aurangabad, Nagpur follow the 1.30 am deadline.
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Have you thought of approaching the officials concerned to extend the deadline?
Shetty: We are constantly trying to meet the police to tell them our problems. We have been approaching the city commissioner especially between December 24 and January 1 every year. Last year, we approached Meeran Borwankar for the extension of the deadline. Though she did not accept initially, it was later extended till 1.30 am. We have tried meeting her during the Janta Darbar but we are unable to convey our issues in a short span of time. We have spoken to other higher officials and they look very positive now. What we have suggested is that instead of each hotel applying for the one-hour extension, they should publicly announce the extension of deadline to 12.30 pm. This ensures that the local
cops do not have to come and inquire every time.

What is your opinion on the 20 per cent entertainment tax that the hotels are expected to pay during World Cup?
Shetty: The department wants us to pay 20 per cent tax of what we pay the channel distributor. Our point is that we are not charging any money for tickets or taking money from the customers to watch the matches. If they want to watch the matches while eating food they can. Secondly, we are paying the cable operators. The licence fee is only for hotels that have a room capacity of above 50. We have even received mails from Novex Communication (an anti-piracy company claiming to have rights over prominent sports channels) to pay for screening the matches but we have refused. The AHAR (Indian Hotel and Restaurant Association) have moved the Supreme Court against Novex Communication and the case is still pending. We have stopped screening private channels and run Dordarshan instead.

The Mumbai police recently have been checking various restaurants and nightclubs and checking the liquor licences of customers. Do customers here also face such checks?u00a0

Shetty: The checking happened after a private new channel did a sting operation on the dance bars. The police now have been checking licences of the restaurants, nightclubs and also the customers. It is always better to have a liquor licence.
Sarpotdar: And it is easy to get the licence as you have to just visit the excise department, take a photo and pay Rs 100. Sadly, the awareness among customers is limited. The department had carried a survey, which showed that more women have liquor licence than men.
Shetty: The peak period for getting the licence is from December 24 to December 31, the party season.
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What are some of the biggest challenges you face in the business?
Sarpotdar: It is a known fact that the food stalls at various areas like the ones which sell Chinese food, bhurji, pav bhaji sell liquor openly. We pay various taxes above Rs 4 lakh a year.
Shetty: We have bought this to the notice of the excise department but they say that it is the duty of the local police and the police say that we should give them the spot and they will raid them. It is a major issue that has been going on for quite sometime now.
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After the German bakery blast, the police have become very strict with security. How are you following the norms?
Shetty: The awareness and promptness have increased among the owners. Some of the popular hotels and
restaurants have purchased CCTV cameras, which we have purchased after getting a good deal with some city-based company. It also helps us because we are able to keep track of our workers. It is not possible to buy metal detectors, as they are expensive.u00a0u00a0