NSW Premier Gladys Berejiklian has been referred to the state's anti-corruption watchdog over a department's dealings with business figures concerning a plot of government-owned land in 2012.
The referral to the Independent Commission Against Corruption was made by Greens MP Jamie Parker after revelations of departmental conduct he described as having "the hallmarks of improper behaviour".
Mr Parker said a 20-year lease extension of government-owned land in Leichhardt was granted to a private company in 2012 when Ms Berejiklian was transport minister - despite the transport department receiving advice against the extension.
"The department clearly ignored their own probity advice which said the extension to the lease should not be granted," Mr Parker told AAP on Tuesday.
The land, which was subsequently developed, now lies in the path of the WestConnex road project with the government facing a hefty compensation bill in order to demolish it.
Ms Berejiklian strongly denies having any involvement in the decision to extend the company's lease.
"There is absolutely no truth to these claims and the premier had no role in decisions relating to this matter," a spokesman said in a statement.
"Transport for NSW records show a briefing note was provided to simply inform her of the department's response to correspondence."
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