A community group was today asked to hand back £17,000 in unspent grants and warned it must account for tens of thousands of pounds of handouts.

The warning to Ravenscliffe and Greengates Association comes as the council launches an independent probe into a separate multi-million pound scheme aimed at regenerating five deprived Bradford estates.

Bradford council chief executive Ian Stewart - who is to appoint an independent chairman for the inquiry - has asked the Ravenscliffe and Greengates group to throw open its books, or face the prospect of losing the chance of future funding.

The council claims it has not received proper audited accounts for more than £60,000 the association has received. He says the council is not happy that the cash has been properly spent.

Today the chairman of Ravenscliffe and Greengates Association, Dominic Sheeran, denied any impropriety.

"We deny absolutely the contents of the letter. We welcome the inquiry and look forward to discussions with the chief executive," he said.

The authority is already investigating anonymous allegations made about membership of the Newlands partnership, which was created to invest cash from the Government's Single Regenration Budget into Ravenscliffe, Thorpe Edge, Fagley, Bradford Moor and Greengates, and a £500,000 grant handed to the estates before the partnership was set-up.

The council gave the Ravenscliffe and Greengates Association two grants of £29,000 and £33,000 in 1997 for proposed information technology and child care projects at that time.

Both have ceased to exist in their original form.

But the association has failed to return more than £17,700 which the council believes is unspent, or let the council see its audited accounts.

Now the association has been told that unless it accounts for the grants further funding applications could be in jeopardy.

And in a letter to the association, council Chief Executive Ian Stewart says an investigation into how £500,000 in council grants was spent on the five Newlands estates may "have some bearing" on the situation

Mr Stewart points out in the letter to the association that despite numerous requests it has not satisfied the council that the grants have been properly spent.

It adds: "It is important you are not misled into thinking that the council considers this matter to be resolved.

"Until such time the association accounts for grant monies provided by the council, the fact that it has failed to do so will be taken into account by the council in the event that it receives any further request by the association for grant or other assistance."

Mr Stewart has warned it will also be taken into consideration if applications are made by organisations managed by RGA members.

He says the council will regularly review its position with the association, particularly when the findings of the investigation are known.

Chairman of the Newlands SRB partnership board Councillor Bob Sowman said: "There are people in the community who have commitment, energy and drive. I believe no community can afford to lose those people.

"There is a need for everything to be totally above board and accountable. Anybody who wishes to particip1ate has to conform and that means opening the books."

Executive committee member for regeneration, Coun Simon Cooke, who ordered the inquiry, said: "We wanted that part of the inquiry to look at how the half million pounds which went to organisations has been spent. We have never had a report before."