Twelve police officers and three environmental health officers from Camden council, stormed the north London site this week after George Irvin and his company, Irvin Leisure, allegedly failed to respond to two noise abatement notices.
Four residents in separate flats in Bridge House, a tower block in Adelaide Road overlooking the funfair site, had agreed to have microphones placed in their homes to record noise levels.
The equipment was taken under the Environmental Protection Act 1990.
The notices served by the council had required the music to be played at low volumes no higher than the background noise between 7am and 11pm, with no music at all after 11pm.
The fair could face a maximum penalty of pounds 20,000 if Camden decides to prosecute.
Meanwhile, the council says it will return the items when the funfair leaves the borough.
Toby Thomson, chairman of Bridge House Residents' Association, who lives on the tenth floor of Bridge House, said: 'It was like having a full-blown disco next door.
Angus Walker, chairman of Camden's public health committee, said: 'Noise is one of the biggest problems in a built-up area like Camden.
A spokesman for Irvin Leisure said yesterday: 'We are very disappointed that Camden took this action and we will be looking at remedies open to us.
He said the noise level had been reduced by 30 per cent and that the fair had offered to disable two rides.