A developer who cleared a block of land in Darwin's north, which at the time was alleged to be a "clear breach" of planning process, will not be prosecuted.

In February, Darwin businessman Nick Bjelica lodged an application to have the block on Boulter Road in Berrimah rezoned from Community Purposes to Multiple Residential Dwelling.

Two months later, four of the seven hectares of native vegetation on the block of land were cleared, sparking a furious reaction from community groups.

Then lands and planning minister Peter Chandler alleged the act was a "clear breach" of government process.

Key points: Darwin businessman Nick Bjelica lodges application to have block rezoned

Darwin businessman Nick Bjelica lodges application to have block rezoned Block cleared of vegetation in April, 2014 sparking outcry

Block cleared of vegetation in April, 2014 sparking outcry Then planning minister alleges clearing was a "clear breach" of planning process

Then planning minister alleges clearing was a "clear breach" of planning process Current Minister announces there will not be a prosecution

"I cannot ask the public to have faith in the Government's planning processes if they're not enforced when there has been a clear breach," Mr Chandler told News Corp.

"We want to see sustainable development, that is why we're looking at this area's flood and drainage issues to see what development is appropriate ... this guy has simply jumped the gun."

But the Government will not be proceeding with a prosecution.

"The Development Consent Authority (DCA) has concluded its investigation into the matter and has advised that it will not be proceeding with prosecution," a spokesperson for current Planning Minister Dave Tollner said today.

She said that "unfortunately, even with the assistance of the NT Police, the DCA was unable to prepare a viable case against the primary parties responsible" for what she alleged was "the illegal clearing" of the block.

"The current enforcement action has brought to light a number of shortcomings in the investigatory provisions (of the Planning Act)," Mr Tollner's spokesperson said.

"For this reason the Minister has directed the Department of Lands, Planning and the Environment to undertake a review of the current provisions of the act with a view to increasing the department's investigatory and enforcement powers."

Mr Tollner's spokesperson said that would be done to stop alleged "similar illegal clearing activities" from happening "in the future".

Both the DCA, which is headed by former Country Liberals chief minister Denis Burke, and Mr Tollner "take the issue of illegal clearing of land very seriously", the spokesperson said.

"Therefore advice was sought from the solicitor for the Northern Territory on whether there were any additional avenues to pursue the matter in light of the evidence."

Mr Tollner's office said the review would help "improve Government's ability to successfully undertake similar prosecution actions in the future".

There was, Mr Tollner's spokesperson said, "no relationship between the land clearing and the application to rezone the land".

MD zoning allows for development two storeys above ground level.

Environmental group outraged

The Rapid Creek Landcare Group said it was dismayed by the decision and claimed there was enough evidence to prosecute the company that did the clearing work.

"We were shocked... there is clear evidence that the company did carry out the clearing," the group's secretary Lesley Alford said.

Landcare's Lesley Alford is disappointed at events since this block was cleared of native vegetation.

That contractor, Litchfield Green Waste Recyclers, confirmed they did clear the block, but did so under instruction from another company, Halikos, which said it was neither the owner nor the developer of the block.

Ms Alford said the Government and DCA's decision not to prosecute showed a weakness in legislation.

She asked how could the community have faith in the planning process if it was not going to be implemented when what she described as "a clear breach" occurred.

"The wetland that's on this block is part of the Marrara wetlands which form the upper Rapid Creek catchment," Ms Alford said.

"It's a really important part of the Rapid Creek system, for the ecology of the system and for the hydrology of Rapid Creek.

"But there's also the principle of the Government enforcing its own planning act and its own planning scheme."

Bjelica: 'I wasn't aware the land was being cleared'

Mr Bjelica told the ABC he was not aware that the land was being cleared.

"I was away in Katherine doing business at the time," he said.

"I don't go there very often; I was told by someone else that the land had been cleared."

Shortfalls in planning scheme identified in September

A committee formed to provide advice to Government on flood mitigation in the greater Darwin area found "planning decisions requiring stormwater assessment are fragmented and responsibilities are ambiguous".

The committee, which delivered its report to Government in September, recommended the "definition of flooding within the NT Planning Scheme is amended to include stormwater flooding to the effect that the owner or occupier of land maintains the pre-development peak flow rates within a catchment".

It found there was "no underlying legislation that deals directly with stormwater management".

"There is no overarching understanding at the planning level of the principles and objectives of stormwater management to be followed in the Northern Territory," the committee said.

In October, Mr Tollner announced the Government would be "implementing the measures" from the committee's recommendations.

Public feedback on the development application at Boulter Road is open until December 18, 2015 and can be accessed on the Department of Lands and Planning website.