A sex cinema described as “like something from Amsterdam’s red light district” where couples alledgedly take part in orgies is believed to be still operating – months after it gave up its licence.

During an undercover visit to Fantasy Video, City Road Street, Finsbury, almost a year ago, a council official reported seeing men pleasuring each other and he was touched on the thigh.

The officer said he “observed six men standing in the cinema masturbating and other men masturbating each other” during the covert operation.

Awful

Instead of going before an Islington Council licensing committee, the proprietor gave up his licence in October – but neighbours are furious because they believe the venue is still attracting customers months later.

One man, who lives off City Road but asked not to be named, said: “Why on earth is it still running?

“I can’t believe it’s that hard to close a hardcore pornographic cinema that hasn’t got a licence.

“It’s absolutely ridiculous. It’s almost like the council has less control now.

“It’s awful to live near – men outside making rude comments to women as they walk past.

“I see people bringing what look like rent boys into the cinema and other neighbours say they can hear the noise of what’s going on through the walls.

“And these are intimidating premises – it’s not like you can just knock on the door and ask them to keep it down.”

In October, Cllr Paul Convery, the council’s executive member for community safety, appealed for patience and said the town hall was about to “rigorously enforce changes”.

The neighbour added: “I believe Paul Convery has the right motivation, but nothing has happened, we have seen no action.

“This area has changed a lot – in the eighties it used to be all barred-up shops and sex clubs – but it’s different now. This is like something from Amsterdam’s red light district.”

Cllr Convery said: “The truth is we just don’t have the power to barge in and shut it down. I wish we could just slap a padlock on places that breach their licence.

“We have conducted a raid, and we are building up a prosection case against these people.

“It’s a case of weeks, not months and they will end up in front of the beak.”