The company has lodged an application for a hearing with the Land and Environment Court, claiming the approval of the development by the Northern JRPP was not permissible.

“Residential accommodation is inconsistent with the zoning as agricultural land, and we believe the decision to approve on that basis was in error,” GrainCorp corporate affairs manager David Ginns said.

GrainCorp lodged an objection against the development application, claiming the village, which sits just south of its transport and storage facility, was not allowable under Liverpool Plains Shire Council’s local environmental plan.

The company was concerned the facility would generate complaints about noise and dust from village residents, which would subsequently affect its operations.

A number of consent conditions were imposed on the MAC Group during approval, to minimise any potential impacts, including pushing the development back a further 180 metres and creating a 1.8m-high, landscaped bund to reduce noise.

Double-glazed windows for the front rooms and airconditioning units with appropriate dust-filtering systems would also have to be installed.

The MAC Services Group reportedly assured GrainCorp the village would not affect its operations, but Mr Ginns said these guarantees were not put in writing.

“As it currently stands, there is a significant risk to our business and we’re not satisfied with their assurances,” he said.

Mr Ginns said any interference would affect the efficiency of the GrainCorp facility, an important part of the grain industry in the region and state.

He could not comment on whether GrainCorp wanted the development to be scrapped or what would happen if its legal appeal was unsuccessful.

A directions hearing will be held on February 3.