Salim Mehajer has hit out at two former fellow councillors who he labelled "dole bludgers" and accused of targeting him for his "olive complexion".

In a Facebook post titled "The Facts" the controversial former deputy mayor of Auburn Council lambasted Irene Simms and George Campbell for calling his purchase of the council car park "dodgy".

The post comes during a rough week for Mr Mehajer, who is set to lose millions of dollars following a decision to scrap two major developments related to his property business.

During his first meeting as government-appointed administrator of the now-suspended western Sydney council, Viv May on Wednesday approved a motion to rescind the controversial development applications.

One of the applications was for a car park in Lidcombe in which Mr Mehajer's property development company was planning to build a high-rise building.

The loss of the sale will reportedly cost Mr Mehajer's business more than $8.5 million.

However, Mr Mehajer has rubbished suggestions his business empire lost millions in just 30 minutes and instead claims he made $12 million in half an hour.

"I didn't lose $10m in half an hour, In fact [I] MADE $12m in half an hour," Mr Mehajer wrote in a statement to Fairfax.

The $22million turnaround is possible because the decision to cancel the sale means the deal will revert to an earlier agreement by Auburn council to sell Mr Mehajer the land for a lower price of $6.5million, the former councillor claims.

"The old contract remains on foot which unfortunately sees the council selling the land at the LOWER price (less $2m)," Mr Mehajer wrote.

Mr Mehajer's suggestion he will remain the owner of the land at a cost of $2million cheaper than the December sale price is reportedly refuted by Auburn Council.

The move also means the flamboyant politician won't be able to proceed with a planned multi-million dollar apartment block.

"When it comes to me or someone with an `olive complexion' lodging a development application, I/we are grossly targeted," he wrote yestersday.

"Or perhaps you may all suffer from tall-poppy syndrome?"

Mr Mehajer labelled Ms Simms and Mr Campbell "dole bludgers" and said they suffered from "jealousy of success".

Mr Campbell called Mr Mehajer's message as an "extraordinary rant" while Ms Simms said his claims were "ludicrous", "didn't justify an answer" and "offensive words from a bitter little boy".

Local Government Minister Paul Toole welcomed Mr May's decision yesterday, saying it would go a long way in restoring the community's confidence in the council.

"Allegations of corruption involving local councillors are extremely concerning," he said in a statement to AAP.

"The public is sick and tired of councils that don't do the right thing and so am I."

Mr Toole formally suspended Auburn Council last week as a public inquiry was launched into allegations its councillors, including Mr Mehajer, were making planning and development decisions which would benefit them.

Mr Mehajer was also temporarily banned from civic office last month for not declaring a financial interest in council decisions on which he was voting.

The latest development on Auburn Council comes two days after the government announced it was pursuing both the current and previous mayors of Sydney's Hurstville Council over possible misconduct.