Grim blow for Aussie pub baron accused of using his day spa as a front for bisexual brothel in Bali - as he is carted off to hospital

An Australian charged in Bali with running his day spa as bisexual brothel has been transported from a police cell to hospital after his health took a turn for the worse.

Melbourne couple Michael, 50, and Lynley Le Grand, 44, were arrested following a raid on their Pink Palace spa as local cops cracked down on the illegal sex industry on the holiday island.

The couple's lawyer Joniono Raharjo previously revealed in October Mr Le Grand was suffering pancreatic cancer but his symptoms are understood to have increased this week.

'In the last several days, his gastric problem has become worse and he often vomitting,' Mr Raharjo told Daily Mail Australia.

'A medical team visited him at the Bali Police Station and he was taken to hospital for further examination.'

The Le Grands were arrested because a saucy sign outside their spa, one of many venues they own, had triggered the Indonesian police raid.

The spa sign - now covered over with a hastily-installed tarpaulin - revealed it was allegedly running as a bisexual brothel when it bragged: 'Happy coq, happy life'.

The Australian couple own the popular GOAT bar hospitality empire in Bali but are now being held in custody after the raid on the Pink Palace 'sensual spa' .

Indonesian reports say the Pink Palace was raided because it allegedly 'provided same-sex prostitution and bisexual practices' which goes against Indonesian culture.

On the day of the raid police allegedly found 'a number of sexily dressed women and muscular men, who behave in an effeminate manner'.

Homosexuality is frowned upon in Indonesia. A Bali police spokesman said officers seized items from the Pink Palace, including lingerie, condoms and massage oil.

Police have now barricaded the venue with police tape and draped a cover over its large pink neon sign promoting 'sensual spa and relaxation' with a cartoon of a rooster in sunglasses with the words 'Happy Coq, Happy Life'.

Police arrested and handcuffed the Le Grands, who are accused of operating the Pink Palace in Badung and lease a luxury villa which they rent out for $200 a night.

A police spokesman told the ABC the Pink Palace was allegedly turning over between $95,000 and $285,000 a year.

Michael Le Grand grimly bowed his head as he and his wife were paraded with their wrists handcuffed behind their backs at Bali Police headquarters last month.

The Le Grands also operate the Corner House cafe, and a string of pubs each known as 'The Goat' at different famous Bali beach locations.

One of the Goat pubs was raided two years ago for a suspected illegal horse betting operation, but no charges were laid.

Gambling and prostitution are both illegal in Bali, and traditional social norms in Indonesia do not accept homosexuality or gender transition.

Even in Hindu Bali, with Buddhist influences and which is more relaxed than the remainder of the world's largest Islamic country, same-sex couples are not eligible for any of the legal protections available to male-female couples.

Last year, Indonesia passed a new criminal code which potentially violates the rights of LGBT people and others, by making consensual sex outside of marriage a criminal offence.

The country does not recognise same-sex marriage. Its new laws also criminalise abortion, increase jail terms for blasphemy and formalise Sharia law which discriminates against women and girls.

Originally raided on September 11, the Pink Palace operated by advertising 'spa packages' on social media and using vans decorated with the venue's rooster logo to collect customers.

Police allege guests would be picked up and driven to the venue where they could select from a room full of 'therapists', who were sex workers.

Customers would allegedly be shown a massage treatment menu which included 'sensation massage, body to body and happy ending' and, police allege, then enter a private room for intercourse.

One of the females found working as a therapist during the raid, NSP, was allegedly a minor, aged 17 years and seven months.

Bali Police charged the two Le Grands, and four others, including the couple's operations director, general manager and two receptionists.

They were charged under Indonesian Child Protection Laws, which outlaw sexual and economic exploitation of children, and also with a pornography offence.

They were taken to the Bali Police Detention Centre.

At the age of 22, Lynley Le Grand was injured in Paddy's Bar at Kuta Beach in the 2002 bombing attacks by Islamic militant terrorists. She was airlifted to Melbourne to recover.

The Le Grands have four children, including an older son who is a Melbourne DJ.

Mr Le Grand operates popular sports bars which open between 9am and 3am, are frequented mostly by Aussies and other tourists, and broadcast events like the AFL and NRL grand finals on large TV screens.

Police had previously raided The Goat Pub in Seminyak in June 2022 and arrested him and three staff members, seizing cash and other items related to alleged 'horse racing' betting.

After a day of questioning at the Denpasar Police Criminal Investigation Unit, Lynley Le Grand collected the four who were released without charge.

Anyone caught facilitating gambling in Indonesia can face up to 10 years in prison.

The Le Grands are both long-term Bali residents, with Michael posting on Facebook a year ago a photograph of a sunset over a Bali waterfront with the words, 'I think I may of found my permanent digs (sic)'.

Last Friday, police publicly lined up the couple dressed in orange police shirts for the media along with eight others arrested at the Pink Palace spa.

Under anti-pornography laws, the Le Grands could face up to 12 years in jail if found guilty.