ONE of the region's best-known hotels was in the dock yesterday after a spot check revealed the scotch at Scotch Corner had been watered down.

And it wasn't just the Jack Daniels, Strathfillan and Famous Grouse which put Friendly Hotels - the chain which runs the landmark Scotch Corner Hotel - on the rocks.

The company also admitted selling cognac, gin and vodka which had been diluted - in some cases by as much as 30 per cent - and was fined £6,000.

Prosecuting for North Yorkshire's trading standards department, Alex Lynn told magistrates in Richmond the offences came to light during a routine inspection of the hotel, which stands by the A1 close to the border of North Yorkshire and County Durham.

All the spirits which had been contaminated were in the function room, which is hired out for weddings, parties and corporate events.

Interviewed by the trading standards team, the management denied any knowledge of what had been going on.

The hotel blamed a rogue member of staff for stealing the drink to feed an addiction or to make some extra money, although the culprit was never caught.

Geoff Mochrie, for the company, told the court Friendly Hotels' regional operations manager had believed a firm of stocktakers would check the contents of the spirit bottles - which later proved not to be the case.

As a result, new policies have been introduced, with bottles of drink now removed from the function room when it is not in use.

Mr Mochrie said: ''The company has a very good reputation and is extremely concerned and embarrassed that it finds itself in this position.

"However, it should be stressed that it was not as a result of a deliberate attempt to gain financial advantage."

As well as fines of £1,000 for each of six offences against the Food Safety Act, Friendly Hotels was also ordered to pay prosecution costs of £1,800.