Buy Rite Settles Undisclosed Liquor License Interests Case with $1.2M Penalty

Licensees to Pay $1.2 Million Penalty for Undisclosed Interests

The New Jersey Division of Alcoholic Beverage Control (ABC) announced today that it has reached a settlement with six retail liquor licensees connected to the Buy Rite franchise, resolving charges of undisclosed and impermissible ownership interests in violation of the two-license limitation outlined in Title 33 of the Alcoholic Beverage Control (ABC) Act. The agreement imposes a combined $1.2 million in penalties in lieu of suspending the licenses for periods ranging from 150 to 210 days.

Violations of Two-License Limitations

Under New Jersey law, an individual or entity may have a direct interest in no more than two retail liquor licenses. Each individual’s ownership must be disclosed and approved to ensure transparency, reduce the risk of illegal activities, and maintain fairness in the alcoholic beverage industry. 

In this matter, three individuals with direct interests in two licenses each were found to have impermissibly acquired additional interests through the Bathena Holding Company, LLC, which jointly managed these establishments. This structure resulted in hidden or undisclosed ownership stakes exceeding the lawful limit.

Specific Licenses Involved

The following licenses were implicated in the investigation and subject to the resulting Consent Order:

Additionally, Union City Liquors LLC (license no. 0910-32-171-012, t/a Buy Rite of Union City) transferred its license during settlement negotiations, ending the Division’s case against that license.

“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.”

Terms of the Consent Order

Penalties and Pleas: Each implicated corporate entity withdrew prior not guilty pleas, entered no-contest pleas (non vult), and agreed to pay $1.2 million in total penalties for operating in violation of New Jersey’s two-license limitation.

License Transfers: Under the Consent Order, Vimalakar Bathena must sell his interest in license nos. 1103-32-011-009 (Yardville Buy Rite) and 1202-32-001-011 (Cranbury Buy Rite) to independent third-party buyers. The sales will be accomplished via person-to-person transfer rather than mere corporate restructuring.

Management Prohibitions: Bathena Holding Company, LLC and Vimalakar Bathena are banned from providing management services to any other liquor license entities in which they do not hold a direct, fully disclosed ownership stake.

Use of Buy Rite Name: While the suspended operations must comply with ownership limitations, the Buy Rite trade name may continue in use by remaining licensees operating under valid franchise agreements.

The Division’s inquiry discovered that Bathena Holding Company provided administrative and management services that effectively conferred undisclosed ownership stakes to three individuals already holding two licenses each. Through shared management and financial interconnections, these individuals exerted “hidden” ownership interests beyond the statutory limit in Title 33.

“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.”

Enforcement and Next Steps

The Division’s action was handled by Enforcement Bureau Chief Sheena Kelley and DAG Jessica Saxon, with investigative work performed by Investigators Anthony Bowen and Kaitlin Lupinacci, under the supervision of Investigations Chief Kevin Barber. 

By resolving this matter through consent, the ABC ensures accountability for large-scale retailers while safeguarding consumers and law-abiding licensees in New Jersey’s alcoholic beverage marketplace.

New Jersey liquor license holders must maintain strict compliance with Title 33’s ownership limitations and the requirement to disclose all individuals or entities with direct or indirect interests in a retail license. Failure to do so may result in severe penalties, including license suspensions or revocations. Industry members seeking guidance on ABC rules, licensing requirements, and updates are encouraged to consult the Publications section of the Division’s website or contact the Division directly.