A twisting 123-metre tower planned for Southbank has been rejected by Victoria's Planning Minister Richard Wynne, amid concerns many of the building's 228 apartments would have be left without adequate sunlight.

The application for 250 Sturt Street has been accused of blatantly ignoring the precinct's recommended height of 40 metres and attempting to infringe on the development rights of its neighbours.

Graphic: Stephen Kiprillis

"To put it bluntly, this is a shocker," Melbourne city councillor Ken Ong said last year.

The tower was proposed by the development company owned by Lloyd Williams, former Crown Casino chief and four-time winner of the Melbourne Cup.