A controversial law that allows local councillors - including property developers - to vote on planning control changes in which they stand to benefit will be scrapped by the NSW government.

The decision has been announced by Local Government Minister Paul Toole following more than a week of scrutiny of the business and political dealings of Auburn deputy mayor Salim Mehajer.

It follows Opposition Leader Luke Foley's call on Monday for the scrapping of the law, which was introduced by the O'Farrell government in 2012.

Cr Mehajer's lavish wedding caused a storm of protest after he blocked off an Auburn street for the celebration, which featured helicopters, a jet and a fleet of luxury cars.