The people were packed inside 'La Cafe' in Paterson on Saturday night for a birthday party.
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The invitations instructed people to bring masks, but officers say no one was wearing one.
Police accused the owners of locking the doors on them to try to sneak alcohol out the back.
Police seized 8 hookahs and various hookah accessories as well as bottles of alcohol and card sets from within the establishment.
Officials report there were no fire alarms inside the lounge.
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