Michael Cooke, 37, was facing six charges including trafficking amphetamines, possessing a drug of dependance and handling stolen goods.

All the charges were dropped except one count of storing an unauthorised explosive without approval.

Police had raided the Wendouree Parade hotel owned by Mr Cooke's parents on December 18, 2008 as part of an investigation into a drug trafficking ring in Melbourne's northern suburbs.

Members of Ballarat's Regional Response Unit and Criminal Investigation Unit carried out the raid with the help of prison dogs.

Ten other warrants were executed on homes in Port Melbourne, Ardeer, Delahey, Reservoir, Northcote and Epping as part of the investigation dubbed Operation Sacred.

Cooke was sentenced yesterday to a three month adjourned undertaking without conviction and ordered to pay $100 to the court fund.

The court also made a forfeiture order for property to be seized and destroyed.