A garda investigation has been launched into a street party near the Oliver Bond flat complex in Dublin City Centre.
Gardaí are investigating whether the organisers of the event breached Covid-19 restrictions on outdoor gatherings.
An investigation is also under way into the possibility that drug dealing was taking place at the party on Saturday evening - the same day new Level 3 Covid restrictions came into place in Dublin.
Scenes from the party have sparked outrage among Dubliners who have to endure a raft of new regulations for the next three weeks.
However, yesterday senior Government sources insisted there are no plans to introduce new laws which will give gardaí legal powers to break up large gatherings and house parties.
There is increasing frustration among gardaí over the lack of powers they have when they receive complaints from the public about parties.
"All we can do is show up and ask people to disperse and if they do, that's great but if they don't, well, there's nothing more we can do," a source said.
Residents in the flats said they called gardaí a number of times while the party was taking place. Video footage from the complex shows around 100 people dancing while music is played by a DJ performing under a marquee.
After the event, residents found dozens of canisters of Nitrous oxide gas, also known as 'hippy crack'. Small plastic bags believed to have contained drugs were also found scattered on the astroturf pitch which was used for the party.
There was confusion when gardaí suggested they were not investigating the incident.
However, it was later clarified they are investigating the organisers of the event rather than those in attendance.
The focus of the investigation will be on identifying the organisers and establishing whether drugs were sold and consumed.
There are high-definition CCTV cameras in the complex which may be reviewed as part of the investigation.
Yesterday, Fine Gael Senator for Dublin South Central Mary Seery Kearney said those responsible should be prosecuted.
"The scenes recorded at Oliver Bond flats were extremely disturbing. It is an offence to organise such an event under health regulations designed to tackle the impact and spread of Covid-19," she said.
"Organising events in breach of guidelines is a penal provision that potentially leads to six months in prison and/or a fine of €2,500.
"That's a pretty stiff hangover for organising such parties but these provisions must now be used to ensure those at Oliver Bond flats and in all other communities can see such behaviour is not acceptable at this time and organisers will be held accountable."
On Sunday, Dublin CIty Councillor Mannix Flynn described it as a "drug rave and orgy".
Social Democrats TD for Dublin Central Gary Gannon said community leaders should "take ownership" of the problem and intervene to educate younger people of the dangers of their parties.
"The guards can only do so much in seeking out the ring leaders. But community leaders such as myself, and I should be doing more, can't absolve ourselves and blame the Government," he said.
Green Party TD Patrick Costello said he would like to see community policing increased in inner city areas.