Members of Wolverhampton Council’s licensing sub committee took the ultimate sanction against Diamond Banqueting Suite, in Skinner Street, following a “flagrant” breach of the law.
Police raided the premises in April and discovered the plants, with an estimated value of between £1 million and £3 million.
Four men, aged 18, 24, 29 and 30, were arrested by officers before being released under investigation.
The licensing hearing on Tuesday, June 22, was almost entirely heard in private due to the ongoing West Midlands Police investigation into the incident.
The force called for a review into the premises licence held by Paramjit Singh, in support of the prevention of crime and disorder objective.
In evidence submitted to the hearing, PC Aimee Taylor said: “Upon entry to the upper floors of the premise a very large industrial scale cannabis factory had been set up.
“There were hundreds of cannabis plants in growth as well as hundreds of small plants ready to be grown.
“There was also a significant amount of bags of soil and further equipment ready to grow further plants. There was also rooms prepared ready to facilitate further grows.
“It is estimated that the value of the entire contents found at the premise is worth one to three million pounds in revenue.
“The rooms were set up with lighting, heating and ventilation. Due to the amount of electrical appliances that had been put in place to supply the growing areas, it is believed the main electrical supply has been bypassed.”
After Tuesday’s hearing, licensing committee chairman Councillor Phil Page said, “There can be no excuse for flagrant breaking of the law in this manner.
“Premises owners cannot shirk their responsibility to uphold the licensing objective of preventing crime and disorder, even whilst the premises are closed to the public.
“The licence holder, Mr Parmajit Singh, has clearly failed in his duty to prevent crime at Diamond Banqueting Suite.”