The developers charged with the illegal demolition of a 160-year-old Melbourne pub have pleaded guilty to moving asbestos from the site to a block surrounded by homes and a shopping centre.

Key points: The Corkman Irish Pub in Carlton was knocked down in 2016

The Corkman Irish Pub in Carlton was knocked down in 2016 The developers were told not to remove debris form the site because it contained asbestos

The developers were told not to remove debris form the site because it contained asbestos But investigators found the material in Cairnlea near a school, and charged the men who pleaded guilty

The Corkman Irish Pub, in the inner suburb of Carlton, was knocked down in October 2016, and owners Stefce Kutlesovski and Raman Shaqiri were charged with illegally demolishing it without a permit.

The developers were told to not remove debris from the site because it contained asbestos.

But the Environment Protection Authority (EPA) discovered some of the waste had been moved to a construction site at Cairnlea, in Melbourne's north-west.

The EPA charged the two developers and their company, Leicester 160 Pty Ltd, with illegally dumping construction and demolition waste including asbestos, and not properly covering and securing the materials.

The pub in 1957, when it was known as the Carlton Inn Hotel. ( Supplied: State Library of Victoria )

The Sunshine Magistrates' Court today heard the Thurlong road site is bordered by homes, is across the road from a shopping centre and is within 350 metres of a childcare centre and primary school.

Magistrate Richard Pithouse said the neighbouring homes back onto the site and "are two-storey buildings with air-conditioning units".

The pair pleaded guilty to both counts and could now face fines of up to $770,000.

Mr Shaqiri pleaded guilty to illegally demolishing the pub in May, but Mr Kutlesovski pleaded not guilty.

Mr Kutlesovski will face a four-day hearing in January.

Mr Shaqiri will have to wait until that case has been finalised before he is sentenced.