MIT withdrew recognition of the Sigma Alpha Epsilon (SAE) fraternity Monday because of an incident on Sept. 2 in which its members allegedly served alcohol to an underage Wellesley College student who was later hospitalized with alcohol poisoning.

The decision effectively disbands the fraternity. MIT officials said they will not consider reinstating it until fall 2001.

Currently, a commission of alumni is under orders from the fraternity's national organization to manage SAE's two Beacon St. houses.

A disciplinary panel in the MIT Dean's Office "voted unanimously to withdraw the fraternity's recognition as an authorized student group at MIT," wrote Dean for Student Life Margaret R. Bates in a statement issued Monday.

This punishment is the latest in a string of alcohol-related offenses at the institute.

Another MIT fraternity, Phi Gamma Delta, closed last year after first-year pledge Scott Krueger died, reportedly because of alcohol he consumed at a Sept. 1997 party at the fraternity.

In 1998, SAE members allegedly served alcohol to an under-aged prospective student. Following that incident--but before the latest one with the Wellesley student--the fraternity agreed with MIT to an alcohol-free probation period in return for being allowed to recruit first-years this fall.

On Sept. 22, however, MIT suspended SAE, meaning its members could no longer participate in school events as a group.

The fraternity's two houses are treated separately by the Boston Licensing Board, a city agency that licenses more than 200 fraternities and sororities, including 20 from MIT.

Based on a hearing yesterday, the board will suspend indefinitely the dormitory license for the SAE's building at 480 Beacon, said Licensing Board Chair Daniel Pokaski. The suspension will take effect Dec. 19.

The board had to suspend the license because MIT will no longer recognize the fraternity, Pokaski said. Official affiliation with a college or university is required for a dormitory license.

The SAE's other house, 484 Beacon, was vacated on Monday, after the board revoked its permit in late October.

That permit was revoked because of the September incident, health and safety violations, and neighborhood complaints, Pokaski said.

Fraternity members allegedly urinated on neighbors' cars, played lacrosse on the roofs of nearby homes, and caused smoke damage when they stuffed trash down a neighbor's chimney, Pokaski elaborated.

"No one seemed to care," said Carl F. King, a Boston attorney and former SAE member representing the alumni commission. He said alumni have been cleaning the houses.

King said alumni might choose to appeal the Institute's decision to Dean of Student Rosalind H. Williams. Unless the fraternity is allowed to recruit freshmen next year, it will be "very difficult" for the MIT chapter to reestablish itself, he said.

"It was a long time coming," Pokaski said of MIT's decision to disband SAE. "[MIT] finally realized that this cannot be fluffed off as 'kids are kids.'"

The national fraternity suspended all of the members in late October and empowered the alumni commission to reinstate those who cooperated with the commission.

King said first-year pledges were restored but that the older students remain on suspension.

The house at 480 Beacon will have to be vacated by Dec. 19. The fraternity can then select three non-undergraduates to occupy it for maintenance and security. The 484 Beacon building is also occupied under the same arrangement.

All 13 first-years will be guaranteed housing in Institute residence halls if they want it, said MIT spokesperson Robert J. Sales.

Upperclassmen can apply to live in residence halls but are not guaranteed housing, he said.

The house president at the time the alumni commission took over would not comment on any aspect of these events. The house manager at the time could not be reached for comment.