The man who stopped a new Tesco store from being built by invoking a 19th century law to protect the local “dogs’ toilet” has declared his actions a “triumph”.

However, local residents and traders in New Addington are incensed that a “group of Luddites” have managed to halt the £80m redevelopment and the creation of 300 jobs.

Tesco planned to build a store in Central Parade, which would have brought with it 250 new homes, a swimming pool, library, community halls, a neighbourhood police base and medical facilities.

But the project has been sunk, or at best delayed, by a “mischievous” action which has resulted in two patches of grass, described by a senior politician as a “dogs’ toilet”, outside Central Parade shops being given village green status, under a 19th century law.

Michael Fuller, the resident responsible for submitting the application, defended his actions saying it was a triumph for the common man and residents did not want the development in its current form.

He was backed by the the Addington Community Association (ACA).

He said: “I’m elated we were successful. People like the idea of Tesco but when I tell them what comes with it they are horrified. It was meant to be a supermarket not a hypermarket.”

He added they were not against the idea of Tesco and said it should be built in Fieldway where it was needed more.

He did admit, however, that some negative comments have been made about his application and joked about getting a stab vest.

Local shopkeepers are furious the development has been delayed.

Ken Burgess, pet store owner and chairman of the Central Parade Business Partnership, said: “What we have here is a group of bloody-minded Luddites who do not want society to advance.

“Change is going to happen whether we like it or not.

“We are geared up for the change and want this done and dusted.”

He said traders’ livelihoods and local jobs were on the line and without the regeneration, Central Parade would not thrive but limp along attracting less people into the area.

Michael Richardson, chairman of the New Addington and Fieldway Neighbourhood Partnership, said he pledged to remain neutral about the issue but 80 per cent of the people he had spoken to supported the Tesco development.

He has invited council chief executive Jon Rouse to the next public meeting on February 11. He is also expecting representatives from Tesco and Lidl – which are planning to build a shop in the ward – to attend.

Croydon Council has vowed to keep the regeneration of New Addington a top priority and is hopeful Tesco will maintain its interest.

Council leader Councillor Mike Fisher said: “This outcome has nothing to do with a group of people genuinely seeking to protect the legitimate use of an amenity as a traditional village green.

“Rather it’s a case of exploiting legislation to block a lawful development that would have brought all kinds of benefits to people living in one of the most deprived wards in the country.

“I could understand the legitimacy of a challenge if the space had been a well-established focal point for recreational pastimes.

“But for the technical argument to be won on the basis of the space – being used as little more than a dog toilet really – shows that the act is in need of urgent review.”

Chief executive Jon Rouse said he would be planning talks with the supermarket chain about future options.

A Tesco spokesman said: “We are extremely disappointed by the inspector's decision.

“This scheme would have provided huge investment in an area where it has been lacking for many years.

“We know the loss of the 300 jobs the Tesco store alone would have provided will be keenly felt in the local area, particularly given today's economic climate.

“We recognise that many will be extremely frustrated the investment in the area has been blocked, at a time when major investment is very difficult to find.”