CLUB'S LICENSE REVOKED AFTER DRUG ARRESTS

Days after undercover narcotics officers arrested more than a dozen
people on charges of selling drugs at a popular Manhattan night club,
the state revoked the club's liquor license yesterday.

One patron at the club, the Tunnel, suffered a drug overdose and 14
others were arrested on Saturday. The club manager was also arrested
for allegedly allowing an underage patron in the bar.

In a statement yesterday, the State Liquor Authority said it had
suspended the club's license while the charges were pending because it
found that the continued operation of the club ''presented a serious
risk to the health, safety and welfare of the community.''

The liquor authority charged the club with four violations, including
failure to provide adequate supervision over the conduct of its
patrons and for allowing the sale and use of a controlled substance.

The nightspot, in Chelsea, is operated by Peter Gatien, who also owns
the Limelight. In January, Mr. Gatien and his wife, Alessandra,
pleaded guilty to tax evasion charges.

Last year, Mr. Gatien was acquitted in a Federal narcotics case.
Prosecutors claimed that he had allowed sales of cocaine and other
drugs to his customers. Calls to Mr. Gatien's lawyer and publicity
agent yesterday were not immediately returned.