$65,000 and white powder taken from Ibrahim home during search

An enraged John Ibrahim has demanded his lawyer challenge a firearms prohibition order handed to him by police after it resulted in the confiscation of $65,000 in cash from his luxury Sydney property.

The Kings Cross identity yesterday appeared relaxed with close friend and media personality Kyle Sandilands while NSW Police raided his Dover Heights home and uncovered the money and a white powder, believed to be cocaine.

Authorities arrived at the property at around 10.30am with sniffer dogs and a battering ram, which was used to access the home and break open a safe.

Officers searched each of the home's rooms, along with the scrub and cliff face surrounding it.

Although no firearms were located in the search, Ibrahim's lawyer said that issuing the firearm prohibition order was "an abuse of process and is entirely without merit". 

"Mr Ibrahim intends to vigorously challenge that provision of that order," his lawyer told 9NEWS.

"Mr Ibrahim emphatically rejects any suggestion, express or implied, of any involvement in any illegal activity, and regards the continued and sustained harassment by the New South Wales Police as unwarranted."

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John Ibrahim's 'secret tunnel' uncovered in police raids: reportSandilands, who later arrived outside the home, told reporters that he couldn't understand why police insisted on searching Ibrahim's property.

"There's no guns here. They've been here like 40 times, they've pulled out walls with suction cups, there's no guns - stop wasting money," he said.

"All he does now is read his own book and watch TV."

NSW Police confirmed to 9NEWS a police operation was underway but refused to comment further.

Mr Ibrahim's home was also raided last August when two of his brothers, Michael and Fadi, as well as his son, Daniel, and his girlfriend, Sarah Budge, were all arrested and charged variously on drug, tobacco and firearms charges.

But John Ibrahim has not been charged with any offences.

His mother's western Sydney home was also raided in August.