EMBATTLED council leader Stephen Greenhalgh furiously denied the authority is 'in the pockets of developers' after he outlined the council's vision to rebuild Earls Court.

At a meeting on Monday night, councillors approved a document outlining the authority's commitment to building 7,000 homes and scores of new amenities in four Sir Terry Farrell-designed urban villages, confirming its belief the development should include the demolition of the West Kensington and Gibbs Green Estates.

No decision on the estates' future will be made until the authority has studied the results of its consultation with residents, but opposition councillors repeated accusations it has 'taken favours' from the developers, Capco, from which the authority stands to make £100m should it agree to sell its land - including the estates - to allow the project to go ahead in full. A land sale contract could be signed as early as next month, which would seal the threatened homes' fate.

Reacting angrily accusations of wrong-doing, Mr Greenhalgh said: "I resent this implication there's an improper relationship (with Capco). I'm standing down this year. I don't work hard only to go and take back-handers from anyone, and it's shameful you're saying this is corrupt in any way. The money (from developers) will be ploughed back into the community."

Opposition leader Stephen Cowan failed to win a vote asking for estate residents to be offered a referendum on their future but he vowed to continue 'fighting tooth and nail' to stop the homes being knocked down.

Colleague Daryl Brown told the council its plans would destroy the community. "Residents love their homes and their neighbourhood... you see them chatting and children playing and there's a thriving community there," she said, adding: "Regeneration and redevelopment are not the same thing. Regeneration adds to the good things already there. How does this plan do anything other than throw what is good away?"

Fellow Labour councillor PJ Murphy said the Conservative leader was 'deaf to logic, reason and electors', but Mr Greenhalgh, reiterating that all residents would get new homes in the area if they are moved, insisted he only has residents' interests at heart. He said including the estates in the plan was 'tough', but said the vision for growth was 'compelling' and 'uplifting'.

"We believe in growth and we think growth in Earls Court can help more people out of poverty," he said. "The developments along the west London line at Fulham Riverside, White City, Park Royal and Earls Court can create 20,000 new homes and 38,000 jobs.

"We take very seriously the allegation that we are trying to socially engineer the borough. I'm interested in doing what's right. We have secured the best deal for any estate in London and I'm proud of that."

He added estate freeholders would receive the market value of their home plus 10 per cent compensation and a 10 per cent discount on their new property if they buy into the development, while council tenants would get £4,700 compensation, new household goods and the opportunity to retain current neighbours.

The outline vision will now be studied by Kensington and Chelsea Council before it is presented to the Mayor of London.

Last month the council approved plans to build 800 new homes in Seagrave Road.