Sydney nightclub Candy's Apartment was shut down on Saturday night following a police raid.

According to Fairfax, police cleared out the entire venue due to concerns that the Potts Point hot spot is being used to supply drugs.

update: EXCLUSIVE: Aussie DJ Responds To ‘Heavy-Handed’ Police Club Raid & Cancelled Gig

The raid follows a three month investigation into drug supply in the Kings Cross area and in a statement released by NSW police, authorities allege that "they identified a number of drug supply and licensing breaches" at Candy's.

After the raid was complete, police reportedly arrested a 21-year-old man outside the venue who was found in possession of 60 MDMA capsules. 

A search warrant of the man's house in Oakhurst was later carried out, where he was charged with 22 drug offences, including supplying prohibited drugs.

He is due to appear in local court today. 

Anti-lockouts activist group Keep Sydney Open yesterday slammed the police operation as an "absolute disgrace".

"… It's clear that last night’s raid on Candy's Apartment was completely unnecessary and a waste of taxpayer’s money," a statement released on Facebook reads.

"One single drug arrest does not justify the dramatic operation undertaken by police, no matter how it’s explained. There are numerous other ways in which such an operation could have been conducted to avoid alarming patrons or hitting the pockets of hardworking artists and staff."

See the full statement here.

The Music has contacted Candy's Apartment management for comment.