The doors are locked and the windows covered at one of Auckland's biggest liquor stores. Signs outside say it's simply closed for renovations.

That's not true: the bright-orange Liquor Hut on East Tamaki Road in Papatoetoe is closed after what a liquor licensing inspector called "a purposeful attempt to mislead", involving a mysterious staff member caught red-handed selling booze after hours.

When inspector Kali Talanoa turned up at the store at 11.12 one night, it should have closed 12 minutes earlier. Instead, staff were still selling alcohol to three patrons. It wasn't the first time it had happened.

But Liquor Hut director Kulwant Singh Sandhar assured Talanoa it would never happen again: he had sacked the miscreant staff member.

READ MORE: How the liquor store industry is riddled with exploitation

It took two requests to Sandhar's agent, Mohammed Ishrar, to discover the name of the man who was sacked: Harpreet Singh.

But Talanoa had no record of a Harpreet Singh holding a manager's licence at either of Liquor Hut's two south Auckland stores.

And things got more suspicious when she visited Liquor Hut's neighbouring franchise in Ōtāhuhu.

STEVE KILGALLON/STUFF Notices on the door are not strictly accurate.

On her arrival, the man behind the till bolted, and another man arrived: the man she'd been told was Harpreet. She was shocked to see him still working there, given Sandhar's assurances. Only the man insisted she had never seen him before, and his name was actually Prabhjot Singh (and showed ID to prove it).

The ruse, her report says, "cannot be interpreted in any way other than a purposeful attempt to mislead" and she described Sandhar and company as running an "operation lacking in integrity".

Furthermore, she wrote, the company delayed handing over requested financial reports so that she could see if they had been repeatedly selling after hours or not. As a result, Talanoa is opposing a new licence, saying Sandhar is unsuitable to operate the site.

This strange tale will play out at a liquor licensing hearing in Manukau on March 19 - and until then, Liquor Hut must remain shut. It had been operating on a series of temporary licences, relying on the former owner's licence - and he surrendered it last month after learning of the inspector's concerns.

CHRIS SKELTON/STUFF Alcohol and pokies campaigner Dr Grant Hewison says there are "alarm bells" about Liquor Hut's operations in Papatoetoe.

Called for comment, Kulwant Sandhar said: "I actually don't want to do any comments right now. I am a bit busy."

Asked directly about Talanoa's report, he said: "Maybe Kali and I don't have understand [sic]."

His agent, Mohammed Ishrar, said he would be happy to talk after the hearing, but argued it would be "quite premature" for him to discuss the case before then and risked undermining the judicial process. But he said it was important to note that the premises had been open for many years and the hearing was simply about a change of operator, and that he would be providing evidence of their experience and capability.

The inspector is the only objector to Sandhar's company Drip and Drop Ltd being granted a new licence, because another objection from community group Communities Against Alcohol Harm arrived two days after deadline.

STEVE KILGALLON/STUFF Liquor Hut even features a drive-through, a rarity in New Zealand bottle stores.

​CAAH chair Glen McCutcheon wanted an inquiry into whether all of Sandhar's stores were obeying employment law, citing a series of stories by Stuff which investigated migrant exploitation, particularly of Indian migrants, in the bottle store industry.

CAAH will stage a protest outside the store on March 13 between 4pm and 6pm. Their secretary, Grant Hewison, said Talanoa's report was very thorough and "raises serious alarm bells... the concerns she has raised here must be treated very seriously, particularly in this very deprived community".

In law, an application to continue a licence can only be tested on the grounds of 'suitability' - that is, that the new applicant is fit to operate the store. Hewison said there was case law to suggest operators in deprived areas should meet a much higher suitability bar than those in better-off areas - and Liquor Hut is in one of New Zealand's lowest socio-economic areas.

Hewison also argued that because the underlying licence had been surrendered this application should really be considered as if it was an entirely new store - which would bring into play other issues about amenity and good order.

​He said it was also an issue that the agent, Ishrar, had been until recently an employee of the Auckland Regional Health Service's alcohol harm team and was now on the other side of the fence, acting for liquor store owners. "I think that is a worry and this is not an isolated example," he said.

STUART GRANGE/STUFF Alcohol Healthwatch executive director Dr Nicki Jackson has particular concerns about Liquor Hut.

​Ishrar disagreed, saying he had a good understanding of the Sale and Supply of Alcohol Act, and its provisions for alcohol harm, and he had recently advised one potential client trying to open up a closed liquor store site not to proceed because he would be unlikely to secure a licence.

"If Grant had a concern, why did he withdraw his objection? Grant has been kicked out of the DLC on a number of occasions and... his voice hasn't been taken into consideration."

​Talanoa's report also raised concerns about the store's 'drive-through' sales window, and said a group of neighbouring off-licences (there are 16 within 2km of the store) had collectively complained that Liquor Hut were selling at 'cost price'.

Liquor Hut's Facebook page advertises "massive sales" and suggests punters "make sure to stock up" and list prices much cheaper than competitors: for example, 12 cans of an RTD called Cruiser sell for $19.99 ($23.99 elsewhere) and 10 cans of a vodka pre-mix called Long White sell for $22.99 ($26.99 elsewhere).

Alcohol Healthwatch director Dr Nicki Jackson said it was an example of a growing trend of social media advertising for heavily-discounted alcohol, which was a concern because price was "a huge driver of consumption". Being in competition with many neighbouring bottle stores and supermarkets also drove down prices.

WARWICK SMITH/STUFF Glenn McCutcheon, centre, and Grant Hewison, right, at a previous protest against a bottle store. They intend to rally another outside Liquor Hut later in March.

Alcohol Healthwatch were also alarmed by Liquor Hut Papatoetoe because of its signage. The entire building is painted orange and black - Liquor Hut's colours - and Jackson said that acted as "one big alcohol brand." A study by Alcohol Healthwatch in the Ōtara-Papatoetoe ward had found multiple cases they believed breached council signage bylaws.

"Pretty much all bottle stores in New Zealand have the most dominant signage [compared to other shops] - it becomes an eyesore," Jackson said. "But we also know from research that shopfront advertising is one of the major forms of exposure for children aged 11 to 13 - and we know advertising exposure increases the likelihood that young people start to drink and to drink heavily."

The March 19 hearing will decide whether to issue a liquor licence for the store. Until then, Liquor Hut - with shelves and crates of alcohol still visible inside - must remain closed.