Auburn deputy mayor Salim Mehajer has been fined $220 for shutting down a street of Lidcombe in Sydney's west for his lavish weekend wedding.

Key points: Auburn deputy mayor Salim Mehajer fined $220 for shutting down street for wedding

Auburn deputy mayor Salim Mehajer fined $220 for shutting down street for wedding Street was closed without permission and neighbours received fake flyers warning their cars would be towed if they got in the way

Street was closed without permission and neighbours received fake flyers warning their cars would be towed if they got in the way Wedding included four helicopters and a fleet of sports cars and motorbikes

Cr Mehajer angered neighbours when he closed down the street and sent fake flyers via a letterbox drop warning residents that their cars would be towed if they got in the way.

The wedding also took over a local park, included four helicopters and a fleet of sports cars and motorbikes.

A pre-wedding video of the couple's courtship was filmed at locations including the University of Sydney and the Opera House.

About 100 people packed the public gallery at an Auburn council meeting on Wednesday night as Cr Mehajer was fined for closing a street without permission from council.

Auburn Councillor George Campbell moved a motion at the meeting to have the Local Government Minister investigate Cr Mehajer's conduct.

Cr Campbell told the council meeting the event had caused a great deal of "public disquiet" and "reeked of narcissism".

His comments were met with jeers by the public gallery which was made up predominantly of Cr Mehajer's 100-odd supporters.

The motion was put to a council vote and was defeated six votes to four, which included a vote from Cr Mehajer in favour of himself.

Cr Campbell said the mayor voted "to suppress the debate" and said he thought what happened at the meeting was "disgraceful".

"I think the [Local Government] Minister should investigate what happened here, the enormous disruption, the context in which it happened, the context of a explosion of narcissism which a lot of people found offensive," he said.

About 100 of Cr Mehajer's supporters packed the public gallery but Cr Campbell said the crowd wasn't representative of the Auburn community ( ABC News )

"I don't think that the people in the gallery were representative of the Auburn community.

"There was something coming close to a ... personality cult."

Cr Campbell said "rent-a-crowd" was not a bad description for those in the public gallery.

Fellow councillor Irene Simms said the fine issued to Cr Mehajer was "very disappointing".

"I'm still getting inundated with people that are just incensed that this is going on. They believe that it's a local councillor who should be setting a better standard," she said.

The New South Wales Government sent a representative from the Office for Local Government to the meeting.

Earlier, two fellow councillors, Irene Simms and George Campbell, said there was a bigger issue than the closing down of a street for a wedding, that needs exploring - whether he as a developer stands to benefit from his position on council.

Cr Mehajer has more than a dozen investment properties in the area.

Cr Campbell said the deputy mayor was one of many councillors across the state who have interests in projects that come before their own council.

The wedding party shut down a street and angered residents who were sent fake flyers warning their cars would be towed. ( Supplied )

"This absolutely is an ethical question," Cr Campbell said.

Cr Mehajer also reportedly downsized units in an apartment block being built in Lidcombe to increase his profits by $45 million.

But his development company Mehajer Group said the reports were misleading and false.

"The amendments to the Auburn Local Environment Plan (LEP) involved consultation with and approval from the Auburn City Council and Department of Planning and Environment and is part of the future urban growth proposals and design of the Lidcombe town centre," the statement said.

The company said everyone who had bought off the plan was aware the size of the units could change and it was written in the contract.

They also had the right to withdraw from the contract if the reduction of the unit adversely affected them and could receive a full refund of their deposit.

In 2012 the NSW Government amended the Local Government Act, enabling councillors to vote on planning proposals even when they have a pecuniary interest.

They are still not allowed to vote on development applications if there is a conflict of interest but they can vote on LEPs enabling them to change the heights of unit blocks.

"I wrote to the Minister for Planning and the Minister for Local Government raising issues at Auburn," Cr Simms said.

"We've had a number of walkouts where some of us councillors left the chamber because we thought it was immoral these councillors were voting for things that would give them such significant increase in the yields for their development."

Cr Simms said the then planning minister Brad Hazzard explained one reason for the amendment was that in some areas there were so many business people on the council that it would be difficult to achieve quorum.

"But I pointed out that in our case we have 10 councillors — two are major property developers," she said.

"So we're not talking about adding another storey to your local shop. We're talking about significant things and if these people left the chamber we would still easily have a quorum."

Cr Campbell said his repeated attempts to raise this issue had fallen on deaf ears.

"The Government was perfectly aware that what they were doing was allowing councillors who owned property that was waiting to be developed to change the rules to increase their rate of profit," he said.

Premier says issue part of local government review

NSW Premier Mike Baird said the issue would be considered as part of the local government review.

"Clearly there is a need for local government reform. That is what we have been engaging with in the local government sector," he said.

"I think all of us want to see a local government sector that is vibrant, that is reflecting the community needs and having the standards that you would expect."

But Mr Baird was keen to point out that councillors were still not allowed to vote on development applications where they had an interest.

"I understand the concerns that have been made but it's important to note that when individual councillors put forward applications they must disclose any interest or family interest and they can't participate in that discussion," he said.

The Auburn council meeting fined Cr Mehajer $220 for shutting the street without permission. ( ABC News: Kathryn Magann )

Local Government Minister Paul Toole said any information alleging a councillor had misused their position should be provided to the council or chief executive of the Office of Local Government.

Cr Simms said that was a frustrating response because the issue was that the Government had provided developers on councils with a legal loophole to benefit from their positions.

"I did send an open letter to the Independent Commission Against Corruption. It was funny because at the time all this stuff was happening with state ministers going from their jobs because of deals they had done with developers to have their applications approved," she said.

"Yet in local government, these people, and it's legal, they are allowed to legally sit there and vote themselves [for] significant heights of buildings that can potentially give them huge yields. We're talking lots of money."