Tesco is likely to have its controversial Balham Hill development authorised this week - more than four years after Wandsworth Council went to the High Court to try to stop it, writes Joe Jackson.

The decision comes 14 months after the retail giant opened the supermarket without active planning consent.

Your local Guardian has learnt Lambeth Council was on the brink of granting new permission for the 104 flats and food store, on the site of the former South London Hospital for Women. Tesco was told by Lambeth Council to submit an entirely new application after it demolished an excessive amount of the listed Cooper Building.

The company failed to comply with conditions imposed to protect the Clapham Conservation Area and ensure public safety. These conditions were set by then Secretary of State Stephen Byers in December 2001.

He decided to grant planning permission despite a Government inspector recommending rejection of the Tesco plans.

Margaret Ross-Bell set up the Clapham South Neighbourhood Association in opposition to Tesco in 1997.

She said: "Lambeth Council sat on its hands during the works, despite being warned Tesco was demolishing too much of the listed building. Now it's too late and the original building is largely destroyed."

The decision would enable Tesco to sell 77 private flats to prospective owners who were expecting completion in May 2006.

It will also enable the handing-over of 27 affordable housing units to a social landlord.