ARRANGEMENTS to sell land for £1 for a hotel will be investigated, according to the new leader of Basildon Council.

Labour’s Gavin Callaghan claimed the move by the Tories could open up the council to a legal challenge.

He told the Echo the proposed sale of land south of Basildon Golf Club, around the size of three football pitches, for just £1, will go back to committee next month.

He claimed the council failed to carry out its own feasibility study or an effective procurement process, and simply acted “on advice from third parties”.

Former Tory leader Andrew Baggott insisted “hotel experts” undertook a feasibility study, adding that council officers and hotel experts are better placed than Mr Callaghan to make these decisions.

The potential sale was voted through in March.

During a social media tirade Mr Callaghan slammed a series of “grave mistakes”.

Deputy leader, Independent Kerry Smith, claimed the process had been “a mess” adding that the loss of money on the land could equate to ten per cent added on to taxpayers’ bills.

Speaking to the Echo Mr Callaghan said: “Firstly, in order for tender or contacts to go forward there should be a lawful procurement process.

“That means that any bidders can ask us what is going on, and get information clarified.

“It means everything is open so it is a fair playing field.

“By making this decision on the £1 sale, we have opened ourselves up to a severe legal challenge.

As well, there was no viability study undertaken by the council.

“Bidders did their own studies, and they told the council they had to reduce the land price, and they took it hook, line and sinker.

“If they had done their own feasibility study, this would never have happened.

“They did not do due diligence into the preferred bidder, and accepted a third party recommendation.”

Mr Baggott defended the process.

He said: “A study was commissioned by hotel experts and the advice of those experts was taken.

“Those studies suggested that a four star hotel would not be feasible in Basildon, and would not be a success.

“The local plan states that land must be a hotel, so you have to think about how you can work with the hotel.

“Craylands Estate was disposed of for a pound, because of the benefit of new homes.

“Basildon town centre had been made available to the council for a pound, because of the benefits.

“It is very common practice.”

“It is Gavin Callaghan’s sheer arrogance that he thinks he knows better than council experts.

“He knows better than Essex County Council.

“He knows better than hotel experts.

“Not all of those people could have got it wrong, and he is barking mad if he thinks that’s the case.”

The issue will be discussed again on June 27 but no decision has been made on what action the council will take.