The High Court has given the go-ahead to a £2bn housing scheme in north London after a legal fight to stop it.
The project known as the Haringey Development Vehicle (HDV) has caused division in the Labour-led Haringey Council.
The authority said it welcomed the judgment but the final decision to establish the HDV would be taken by a future administration.
The complainants are planning to appeal.
The legal challenge was brought by a group of Haringey residents who said the council failed in its public sector equality duty, its duty to consult properly and should have made the decision in full council rather than the cabinet.