The Blenheim Centre developer axed by senior councillors three weeks ago has sensationally vowed to press ahead with the next stage of the project.
The Chronicle reported last month how the council's executive severed ties with Blenheim Norwest over 'disappointing' plans to regenerate Hounslow town centre.
Tory leader Peter Thompson said the decision was made after the expiry of a development agreement between the two parties in September.
But, having initially refused to comment, Blenheim Norwest project director Ray Daniel this week confirmed he and his partners are going ahead with Phase 2.
Speaking exclusively to the Chronicle, he said: "We've a planning application we submitted some weeks ago, which we're pursuing.
"Where that goes is in the hands of the planning department.
"In the meantime, we've spent an awful lot of money drawing up and submitting a planning application and will see it through."
He would not reveal his opinion on the council's decision but admitted the Blenheim consortium was in a 'very difficult position'.
However, in a statement, another Blenheim spokesman said they were 'deeply disappointed and surprised'.
"Over the last three years, we have spent significant time, not to mention financial resources, working with officers and the executive members to design a scheme which has had overwhelming support of all parties and residents," he added.
"The decision is a huge setback for the area and is likely to cause serious delays in providing badly needed investment in Hounslow town centre."
Under the £165million plans the town's skyline would be dominated by 18-storey and 11-storey tower blocks, a canopied walkway, a multi-screen cinema and 32 new shops.
Mr Daniel said he still believed it was the 'best scheme' for Hounslow and the application was submitted in good faith.
The land the scheme would be built on is owned by Hounslow Council and as a car park generates an annual income of around £1million.
"When, and if, we get consent we'll review our position," said Mr Daniel.
His defiance comes as former council leader John Connelly this week led calls for a public meeting to get to the bottom of what went wrong.