Police have closed a hotel in Forrest for 90 days after allegedly finding illicit tobacco at the premises. 

Officers from the Colac Crime Investigation Unit, Forrest uniform and VIPER Taskforce gained search warrants for one location each in Forrest and Colac on Wednesday (September 30).

Police say they seized about 10,000 cigarettes, 800 grams of loose tobacco and $10,000 in cash.

The second business in Colac was issued a warning.

“The use of the new closure powers sends a strong message that businesses engaging in illicit tobacco offending risk significant consequences, including temporary closure,” VIPER Taskforce Acting Inspector Detective Shane Abson said.

"This result demonstrates our commitment to dismantle illegal activity and hold offenders to account, regardless of whether it occurs in metropolitan or regional communities.”