The 78-year-old yelled ”let me go” as the two officers grabbed his arms and subsequently tripped him, causing Lim to fall head-first onto the tiled floor.
Confronting footage taken by a bystander shows a limp Lim laying on the floor as the officers handcuff him and sit him up.
Police said Lim had failed to comply when he was asked to leave the building by security, and then officers.
“Police will allege the man was subsequently issued with a move on direction by officers and failed to comply,” they said in a statement.
“The man’s arrest was discontinued after he struggled with police and sustained an injury to his cheekbone…
“As inquiries into the incident continue, an independent review has been launched, which will examine the actions of police during the incident.”
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Lim was treated at the scene and then taken to St Vincent’s Hospital by paramedics.
Lim has claimed police “smashed me on the concrete floor”.
Police are investigating and will review body cameras worn by the officers involved.
He won the battle in court, allowing him to wear the trademarked signs.
Lim previously said after being fined for a similar sign targeting Tony Abbott in 2015, the term became his trademark.
In August 2019, magistrate Jacqueline Milledge ruled in his favour saying “the police action was heavy-handed and unnecessary”.