When the former Daily Planet brothel in Elsternwick was reborn as a drug rehabilitation clinic last year, alarm bells rang among neighbours, drug counsellors and even Victorian magistrates.

Key points: The Daily Planet brothel rebranded as a rehabilitation centre called Wellbeing Planet last year

The Daily Planet brothel rebranded as a rehabilitation centre called Wellbeing Planet last year There are no regulations restricting who can open a private drug and alcohol rehabilitation clinic in Victoria

There are no regulations restricting who can open a private drug and alcohol rehabilitation clinic in Victoria Many Wellbeing Planet clients had successfully applied for bail on the condition they remained under strict supervision at the clinic

A year later, its doors are shuttered once again — this time by police crime scene tape, in the wake of detectives uncovering an alleged meth lab during a raid on the premises yesterday.

Two men aged, 56 and 61, appeared in court today charged with drug and weapons offences. A 52-year-old woman was released and is expected to be charged on summons.

When the Wellbeing Planet opened its doors as a drug rehabilitation clinic last year, nearby residents were invited in to take a look — and were stunned to find little had changed other than the name.

"I remember thinking this is not a rehabilitation centre," one neighbour who walked through the facility on the day said.

"It was still decked out as a brothel. It had a large entertaining room with a bar, billiard tables, gaming machines and paintings of naked women on the walls.

Police say they uncovered a meth lab at the Wellbeing Planet in Elsternwick this week. ( ABC News: Patrick Stone )

"Every room we went into had multiple beds, group showers, mirrors on the walls and on the ceilings above the beds.

"There is no access to daylight, no windows, no general amenity that you might want in a facility like that. The exact opposite in fact."

The clinic won planning approval from Glen Eira Council, with the strong support of councillor Mary Delahunty, who said she was shocked by the latest developments.

The Daily Planet brothel was reopened as a rehabilitation centre. ( Facebook )

"It's very disappointing," she said.

"The police have done their job, but I feel like I personally went in to bat for the service."

In Victoria, there are no regulations restricting who can open a private drug and alcohol rehabilitation clinic. Like many such facilities, the Wellbeing Planet drew clients from the court system, who successfully applied for bail on the condition they remained under strict supervision at the clinic.

Three people were arrested on Monday when detectives allegedly found a clandestine meth lab at Wellbeing Planet. ( ABC News: Patrick Stone )

At the time the Wellbeing Planet opened, Victorian magistrate Charlie Rozencwajg told the ABC he was concerned more defendants were asking to be bailed to private drug rehabilitation clinics as an alternative to jail, when little was known about the clinics they were being bailed to.

"Residential rehab is the easiest way to get bail," he told the ABC.

"Or at least, it's the hardest to refuse. It's a problem for magistrates because drug counsellors come along on a regular basis, and they're often aligned with a particular firm of solicitors.

"Virtually anyone can hang out their shingle. And it's very difficult for magistrates to discern the quality of the facility that's being proposed."

Wellbeing Planet operator Denise Abadee did not respond to request for comment from the ABC.