Bradford South MP Gerry Sutcliffe has accused Bradford Council of being "obstructive" over its handling of a planning row.
The comment came after the authority decided not to revoke planning permission for a so-called private hospital in Bierley, which will be used as a secure psychiatric unit.
Mr Sutcliffe has now threatened to take the issue to the local government ombudsman.
Bierley residents say the Council never consulted with them over the unit, and had hoped the throwing out of a similar plan in Goole, East Yorkshire, earlier this week would strengthen their case.
But Bradford Council has refused to revoke permission, saying the two cases are entirely different.
Mr Sutcliffe, who has raised the issue with fellow ministers and Deputy Prime Minister John Prescott, said: "We say the Council has not done this through the right process, and in our letter about this from the Deputy Prime Minister he talks about consultations being meaningful. We say they have not been meaningful.
"The Council are being obstructive. I am quite sad that the Council seems to be finding ways of not helping residents when they could, and this East Riding option could have given them a way of helping."
Mr Sutcliffe said he had now received assurances from health minister Yvette Cooper that planning law in this area would be reviewed.
Bradford Council's director of transportation, design and planning Alan Mainwaring said: "We've looked at the situation in the East Riding very closely to see if anything can be drawn from that case to help us here in Bradford.
"We've been advised by a leading planning barrister, who also acted for East Riding Council, that the two cases are entirely different.
"Her advice is that the development at Bierley falls within the planning permission which was granted and that there are no grounds for us to revoke our decision.
"We will however continue to work with residents to address their concerns."
Andy Lord, a Bierley resident and campaigner against the development, replied: "The Council has totally failed in their latest public announcement to say why they claim that Bierley is different from the East Riding."
An 800-name petition handed to the authority in January must still be considered by a meeting of the full Council, and will then be referred to an appropriate committee for a decision.
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