The licence for Café Lounge, in Church Lane, had been revoked by Waltham Forest Council in April 2025 after immigration officers arrested four people without the right to work during a raid
A Leytonstone café has had its alcohol licence reinstated after successfully appealing a council decision to revoke it over illegal workers and unlawful indoor smoking.
The licence for Café Lounge, in Church Lane, was revoked by Waltham Forest Council in April 2025 after immigration officers arrested four people without the right to work during a raid that January. Officers from the Home Office and Metropolitan Police were reportedly sworn at and told to leave by staff during the visit.
At the original hearing, the council argued the venue had shown “five years of non‑compliance”, including a previous conviction for the venue’s manager Meriman Spahui.
In 2021, Spahui and his business, E11 Café Ltd, were convicted in a two-day trial after people were found smoking inside the café, which is illegal. License holder and Spahui’s boss Halit Matraxhi and Church Lane Enterprises also went before Thames Magistrates’ Court, but were acquitted.
At the April 2025 council hearing, Matraxhi told councillors he should not be punished for the actions of his manager, Meriman Spahui, who ran the café day‑to‑day under a management agreement and has since been dismissed. Matraxhi said he acted only as landlord, visited infrequently and had no knowledge of the illegal workers.
Councillors were unconvinced, saying Matraxhi had failed to properly supervise the premises and the licence was revoked, with the café given 21 days to appeal.
But as Local Government Lawyer reports, at a Stratford Magistrates’ Court hearing in December 2025, District Judge Sher overturned the council’s decision after hearing that the café had operated without incident for seven months following the raid.
During that period, the licence holder removed the former tenant, took direct control of the business and appointed a new, experienced manager. No smoking was permitted on site and no further issues of crime or disorder were recorded.
The judge ruled that while the council’s decision had been justified at the time, the “passage of time” and clear change in management meant license revocation was no longer appropriate.
The licence was reinstated but with strict new conditions, including banning the former tenants from any involvement, prohibiting smoking unless the council confirms compliance with smoke‑free rules, requiring all licensable activities to be run directly by the licence holder, making the licence holder responsible for right‑to‑work checks, 18 months of independent compliance inspections, and excluding a junior director from the business.
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