A New Jersey town is being sued by an Islamic group who have accused the planning board of bigotry after it rejected a proposal for a mosque.

Bernards Township has been plagued by controversy since its planning board took up a proposal for a 4,250 sq ft mosque in Liberty Corner, a residential neighborhood, in 2011, FoxNews.com reports.

The Islamic Society of Basking Ridge’s application to build the mosque was denied in December after four years and 39 public hearings in the town, which is around 36 miles west of New York City.

The group, led by Mohammed Ali Chaudry, a former Bernards mayor, filed a federal civil rights suit accusing the board of religious discrimination in March.

It alleges a delayed and drawn-out process during which residents made references to terrorism and questioned what children would learn in the mosque.

A New Jersey town has been rocked by charges of bigotry after it rejected a proposal for a mosque. Above, an artist's rendering of the proposed mosque in Bernards Township

‘I came to America almost 50 years ago with a firm belief in the values that America represents, including freedom of religion before the law,’ he told The Bernardsville News.

‘This mosque is part of my American dream.’

The plaintiffs have subpoenaed more than 30 residents of the suburb – known for its leafy streets and multi-million dollar homes – who spoke out against the project in a bid to prove that the decision was based on bigotry.

The group’s lawyers want to interview residents who spoke out against the mosque by reviewing their email and social media posts.

In a court filing, Bernards Township officials responded to the suit saying the public hearings were motivated by issues including storm water management, lighting and fire safety.

And the town’s current mayor Carol Bianchi insists that the decision was not biased.

‘This is a land use matter,’ she told Fox. ‘It was never about religion.’

Former mayor Mohammed Ali Chaudry (left) leads the The Islamic Society of Basking Ridge, who applied for the mosque. Right, current mayor Carol Bianchi insists the decision to reject the proposal was not biased

She added that Chaudry was the first Pakistani Muslim mayor in the country in 2004 after being elected to the township committee after the 9/11 attacks.

‘I am disappointed that he would call this community, which has always embraced him, bigots.’

The Justice Department is conducting a separate investigation into the case.

Federal officials are investigating whether the New Jersey town violated religious freedom laws when it denied a group's plan to build a mosque.

The ISBR had bought four acres of land in the neighbourhood before applying to building a mosque and 107 parking spaces five months later.

‘What should have been a simple board approval for a permitted use devolved into a Kafkaesque process that spanned an unprecedented four years and included 39 public hearings,’ the suit said.

‘These proceedings took place against a backdrop of ugly spectacle.’

The group is suing under the Religious Land Use and Institutionalized Persons Act, which is the same statute that spurred the Justice Department probe.

The 2000 law protects religious organizations from being discriminated against through zoning laws.

A municipality that's sued under the law must prove that its zoning laws further some kind of compelling government interest.

The planning board had expressed concerns, among other things, about storm water drainage and a buffer zone between the proposed mosque and a neighboring property.

But the plaintiffs allege that Chaudry faced ‘intense hostility’ from residents who opposed Islam in general as well as the proposed mosque.

They claim their opponents recruited and coached ‘objectors’ to attend the public meetings and bash the project using carefully chosen words.

The suit cites anti-Muslim incidents including vandalism of a mailbox and social media posts.

But one resident who was subpoenaed insisted that the ISBR were on a ‘fishing expedition.’

Speaking on the condition of anonymity, the resident told Fox: ‘I spokes out once, at one meeting.