A controversial plan for a high-rise tower on top of Ormond train station has been dramatically blocked at the 11th hour after a motion to reject the project was passed in Parliament.

The highly unusual move has been slammed by the property industry and planning experts, who warn it will undermine proper planning process and increase red tape.

Jacinta Allan called blocking the controversial Ormond tower a "political stunt".

Planning Minister Richard Wynne had approved the 13-storey tower despite a long-running campaign against it by local residents and Glen Eira Council, which pushed for eight storeys to match the low-rise area.

Mr Wynne backed the mixed-use development in the politically sensitive south-east with retail, offices and 233 apartments after a planning panel endorsed the project.