News 12 First at Five -- July 26, 2010

AUGUSTA, Ga. --- Some Augusta hotel guests faced an early checkout Monday morning after the Georgia Dept. of Revenue seized five businesses for unpaid taxes.

Country Inn and Suites, Ramada Inn, Best Western and Stay Bridge Suites on Center West Parkway were all seized, as well as Days Inn and Suites on Washington Road.

Reg Lansbury with the state revenue department says the hotels' owner, Jugal Purohit, failed to pay sales and withholding taxes.

Guests were called and asked to leave immediately from several locations. Georgia Department of Revenue agents then roped off the premises with yellow police tape. Some businesses, like Best Western, were allowed to remain open, but still taken under control by the state agency.

The hotels are now back up and running after having their liabilities settled in full.

Monday Morning brought a rude awakening for Elizabeth Propes.

"I got a phone call at 8:30 this morning, and at first I thought it was a joke," she says. "The person on the phone said that the Department of Revenue was going to shut down the hotel and we'd have to be out by noon."

She was staying at the Country Inn and Suites off Center West Parkway when agents from the Georgia Department of Labor arrived and seized the property.

"[The woman on the phone] was making it sound like, 'you've got to get out.' It wasn't just this casual call," Elizabeth remembers. "She said, 'you need to be ready to leave as soon as you can.'"

Five properties were seized in all. They are owned by Jugal Purohit. He manages Purohit Holdings, a family business, and owns more than eight business properties around Augusta.

Richmond county deputies were on hand to help Department of Revenue serve the notices.

By 11:00am, Ramada Inn and Stay Bridge Suites were up and running after their liabilities were paid off. Revenue department representative Reg Lansbury tells News 12 Mr. Purohit owed more than $400,000 for the two hotels.

Best Western soon followed, and by the end of the day, all five hotels were paid in full and open for business.

But not without at least one unhappy customer.

"I've never heard of this happening before. It's very bizarre," Propes says as she loads her car to leave the Country Inn and Suites. "There are policemen inside, you know, there's tape on the door. So I'm glad the police didn't come knock on the door and tell us we had to go."

Propes adds she plans to call or write a letter to the hotel asking for a refund.

News 12 spoke with Mr. Purohit, who claims he received a letter last week stating he had 30 days to pay the money. He says the state revenue department didn't give him the full 30 days before seizing his properties.

As far as refunds, Purohit says Sunday night customers will not be compensated for Monday's events. But some guests who decided not to stay Monday night will receive refunds.

This is not Mr. Purohit's first time in tax trouble. In September 2009, was behind on thousands of dollars in taxes. Augusta commissioners threatened probation for his hotels, but ended up granting him an extension.