Justice Gerald Nation granted the High Court restraining order under the Criminal Proceeds (Recovery) Act 2009, saying there were "reasonable grounds" to believe that the Mulford St property was used to facilitate crime and that Farquhar had unlawfully benefited from significant criminal activity.
Farquhar has been charged with cultivation of cannabis and possession of cannabis for sale after police armed with a search warrant uncovered the Mulford St bunker. He has pleaded not guilty.
The High Court was told that the bunker was below the Dunedin house with a heavy, dead-bolted metal door. It had professionally-installed electricity, plumbing and ventilation.
Inside the bunker, they found two tents and a large container that police allege was for growing cannabis seedlings.
In the first tent police claim to have found 16 mature cannabis plants in pots, ready for harvest, with an alleged potential street value of between $25,600 and $32,000.
In the second tent they claim to have found six bags of dried cannabis buds and stalks, weighing a total of 1.4kg and with an alleged street value of between $20,000 and $25,000.
Police told the High Court that Farquhar, an ACC beneficiary, lived a "cash-heavy lifestyle" with only $4500 spent on household expenses from his bank accounts between August 2013 and August 2020.
Based on the average spend for a one-person household in the South Island, Justice Nation said it would appear that Farquhar had access to about $78,000 in cash over that period.
Police told the court they believed that the Middlemarch house was bought with the proceeds of criminal activity, and that Farquhar had benefited from crime to a sum of at least $165,000.
The Criminal Procceds (Recovery) Act 2009 allows property - including real estate, cash and vehicles - to be seized by police.
A restraining order can be issued over the assets if a court is satisfied on the balance of probabilities that it has come from significant criminal activity. A forfeiture order can be obtained, transferring the assets to the Crown, once a conviction has been obtained.
Farquhar is due to come before the courts again in December.