Arrowcroft has issued proceedings in the High Court to overturn secretary of state for communities and local government Ruth Kelly’s decision in June to approve Stanhope and Schroder’s plans for the bitterly disputed Croydon Gateway site

Arrowcroft, which is Croydon Council’s preferred developer, has argued in a document filed at the High Court that Kelly has misinterpreted the authority’s planning policy for development on the site.

Stanhope and Schroder, which own most of the site, will not necessarily include an arena on their scheme, and Arrowcroft argues that the council’s policy necessitates an entertainment venue in any new scheme. Arrowcroft has proposed such a venue in its plans.

In addition, Arrowcroft says Kelly failed to reasonably interpret the policy to require a masterplan.

A Stanhope/Schroders spokesman said: ‘Ms Kelly’s decision offered Croydon its first opportunity for genuine progress on this site. The London Borough of Croydon recommended that planning permission should be granted at the recent public inquiry.

‘We still expect to start on site as planned later this year.’