A NSW Greens MP says he will demand a police investigation into a Sydney councillor who denies he is a property developer, even though he has applied to develop 150 properties, after an Electoral Commission investigator said its powers were limited.

Fairfax Media reported last March on Fairfield Liberal councillor Peter Grippaudo (also known as Fowler), who said on an Electoral Commission nomination form that he was not a property developer.

Fairfield Liberal councillor Peter Grippaudo denies he's a property developer.

That was despite his links to companies, such as Fowler Homes, that had lodged applications to develop nearly 100 properties, including Grippaudo Glade, a private Minchinbury street with five homes.

Claiming not to be a developer could be a way to sidestep a suite of measures that the state government has passed to "restore community confidence" in councils, including forcing developer-councillors to disclose income from development.