Local News

State revenue agents seize five Augusta motels

By Rhonda Cook
July 26, 2010

The man who owned five Augusta hotels the state Revenue Department seized Monday has a history of not paying taxes.

According to public records, Richmond, Wayne and Columbia counties have filed tax liens against Purohit Jugal. A manager at one of Jugal's hotels said he would not comment on the Monday morning raids on five of his Augusta hotels.

According to Deputy Commissioner Ed Many, the five hotels combined owed almost $1 million to the state for sales taxes and employee withholding taxes.

The motels remained open Monday because there were guests there. Otherwise, the locks on the businesses would have been changed to prevent anyone from taking any furniture or equipment, Many said.

"We haven't put locks on the doors," Many said. "But I call it a wake-up call."

Thirty agents swooped down on the five motels around 8 a.m. Monday, posting someone at each entrances to insure no property was taken.

Soon after the operation, back taxes of about $400,000 were paid on two of the properties -- Stay Bridge Suites and Ramada Inn. The tax debt owed by the three other properties -- Country Inn and Suites, Best Western and Days Inn -- remained outstanding Monday afternoon.

Many said the motels continue to operate.

"We've told them [motel guests] they could sit tight for the moment," Many said.

He said it had not been decided if the motels would accept new check-ins.

"It's a very fluid situation," Many said.

The state debt that led to the raids included taxes owed for last year and this year. Liens have been placed against Jugal's properties as far back as 2005 by Georgia and Columbia, Wayne and Richmond counties for amounts ranging from $4,250 to almost $17,000, according to records.

"The owner will still have to pay up," Many said. "He knows ... he has to pay in full to keep the premises open," Many said.

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