When the Herald visited the takeaway yesterday, there were four cars parked on the street - which was meant to have a broken yellow line - and their drivers were inside the eatery waiting for their orders.
Paul Patel, a regular customer, said he was pleased to be able to park just outside the takeaway.
"I used to have to park across the street and it's really inconvenient when you've got to carry tubs of curries," Patel said.
"Is it really that someone has painted over the yellow lines? I thought it's just the council finally having some common sense."
Mark Lloyd, who posted a comment on the Sandringham Community Facebook page, said parking there made the pedestrian crossing "even more hazardous than normal".
Irfan Kabir, the takeaway's restaurant manager, said he first noticed the lines being covered up by black paint about two weeks ago.
"I thought it was the council doing it, so I didn't question it too much," Kabir said.
Paradise owner Rafi Mohammed said customers had constantly complained about getting fined for parking or even stopping just to collect their takeaways.
AT's website state the penalty for parking on a broken yellow line is a $60 fine.
Mohammed said: "I always tell them I have control over what happens in my restaurant, but I don't have control over what happens on the street."
He said he welcomed AT's plan to have the broken yellow lines repainted.
"I don't like cars parking in front of the shop, because it blocks our frontage and affects our business," Mohammed added.