POLICE have rejected a liquor licence application for the city's Metro nightclub after the team behind the bid put only one name on the application.

The one applicant, a Greg Young, owned an Elizabeth St club that burnt down in 2003.

Greg Young was also "business consultant" to St Kilda nightclub the Palace, which burnt down after a daylight arson attack on July 11 this year.

A police investigation into the Palace blaze is ongoing.

Palace leaseholder Jerry Pilarinos was evicted from the prime St Kilda foreshore site in May this year after losing a long-running Supreme Court stoush with his landlord, the State Government.

In June, he bought the Metro building for $10 million.

His brother is former drug lord Peter Pilarinos, who in 2000 pleaded guilty to charges of bribing corrupt drug squad police.

Melbourne liquor licensing inspector Chris Duthie said he had objected to Mr Young's application because he claimed it didn't disclose who was really behind the proposal.

"People have put money up other than Mr Young, and he actually has a very small part of the business," Insp Duthie claimed. "The application gave no indication of people behind the (application)."

Mr Young worked as a business consultant to the Palace until at least late April this year.

Late last month Mr Young's company, Palace Metro Pty Ltd, applied for a liquor licence over the Metro.

Insp Duthie said he had met others involved in the application and advised them to prepare a new one listing everyone involved.

"I am taking it as a mistake and will await with anticipation for their next application," he said.

Until August last year, the Metro was run by a company half-owned by a man linked to the Gypsy Jokers motorcycle gang.

But Paul Pavlovski did not appear on licensing paperwork.

He is voluntarily banned from holding a liquor licence in South Australia, and an old drugs conviction makes it unlikely Victorian authorities would grant him a permit.

"There have been a number of issues in the past with the Metro, and police were not happy with the way the place was run," Insp Duthie said.

Insp Duthie has been Melbourne's liquor licensing inspector for the past 12 months.

Before that, he was inspector for Port Phillip, where Mr Pilarinos operated the Palace.

"They did have a licence when I arrived down there, so I had to work with them . . . generally, they did run a reasonably good show," Insp Duthie said.

"They have been good corporate citizens as far as I know."

Mr Young was contacted by the Herald Sun and declined to comment on the licence application.

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