A high-end massage parlour on the Isle of Dogs faces being shut down after staff allegedly offered sexual services to customers.

Workers at Geo Medical Healthcare in Skylines Village, are accused of trying to sell sex acts to clients for an extra fee.

One undercover investigator was led into a “red room” where he was offered a “happy ending” for £20 or a “body on body” service for £45, a report says.

The masseur, who was dressed in heels and a black dress, also told the secret customer that he had a “nice bum” and that her friend would “really like” him, it is claimed.

The parlour, which was convicted over the activity earlier this year, is now fighting to keep its licence.

Company director Na Gao insists she is unaware of the alleged activity, claiming she “normally only deals with the beauty and slimming side of the business”.

According to the report, submitted to the licensing committee at Tower Hamlets Council, the business came under the spotlight in April 2014 when a customer alleged it was “operating as a brothel”.

Subsequent visits by undercover officers found staff were offering “services of a sexual nature”.

During a visit in June last year, an undercover investigator was offered a ‘happy ending’ during a shoulder and back massage, the report says.

He wrote in a witness statement: “I asked what this was and she simply replied ‘yes? no?’ I declined the offer but asked her how much the extra service would cost and she replied “twenty, you try?” I declined once again.”

During another visit that month, the investigator, who had asked for a 30-minute massage, was allegedly offered “extra services”, including “hand relief”.

In March, an investigator was led upstairs to a red-painted room – complete with a massage bed, brown sofa, black blinds and “soft background music” – where the masseuse began touching his “groin area”.

He wrote: “She asked if I would like a “happy ending” for “20” or “body on body” for £45. I declined both offers. She then began to compliment me stating “you have a nice body” and “you have a nice bum”. “She also stated that her friend would really like me.”

In documents submitted to the council, Ms Gao’s lawyer said: “Ms Gao has expressed her extreme distress and has been very shocked by what her beauty and health practice has been accused of.

“She stated that if any of her staff has been offering any inappropriate/sexual services to her customers, she has been completely unaware of and would never have allowed such behaviour within her practice.

“Ms Gao also mentioned that her staff are aware that there is CCTV in operation in the massaging rooms. This acted as a deterrence/protection to the staff and the customers in case anyone did misbehave or should there be any concerns for safety. CCTV recordings are automatically deleted by the system after two months.”

They added: “Ms Gao would like to reiterate that she has been completely unaware that her practice has been used other than in accordance with the terms and conditions of her special treatment licence.”

In January, Ms Gao admitted three charges at Thames Magistrates’ Court in relation to breaching the conditions of her licence.

Two of the charges included allowing the “premises to be used by prostitutes, for soliciting and other immoral purposes”, relating to the June visits.

She was ordered to pay more than £1,000 in fines and costs.

Councillors will decide on the parlour’s special treatment licence at a meeting next Tuesday.