A council blunder meant a Croydon man had his car towed away and sold at auction.

Suseelan Damodaran was on holiday when his 2004 Ford Focus was taken from outside his Purley home by the council.

When he returned he discovered that not only had it been towed away for a fine that he had actually paid but the car - worth around £8,000 - had been sold.

A leading councillor has apologised for the blunder and promised to compensate the disgruntled driver.

Mr Damodaran explained: "When I rang the bailiff they said the car had been sold at auction and when I rang the council they checked the system and said something must have gone wrong because they had a record on their system that I had paid."

After lodging a formal complaint with the council to get compensation for the error, Mr Damodaran was told the car had been bought back.

"They wanted me to pick it up from east London but why should I? I didn't deliver the car up there," the married father-of-two added.

The car was eventually delivered to the family home but, according to Mr Damodaran, there is extensive damage and a number of personal items are missing.

He said: "I'm able to bring the car into work but I'm not sure if it's roadworthy because there are bits and pieces hanging off and I cannot open the bonnet to check the oil or water."

The car has since been examined by a garage recommended by Mr Damodaran's insurance company and the cost of repair is an estimated £1,496.20p.

"I want them to pay up first of all for the damage, that's my immediate priority. Then I want compensation for my loss.

"I was completely disappointed with the penalty charge notice in the first place because it was at the London Road junction with Poplar Walk and I felt there wasn't adequate signage on that road. Then for this to happen I just can't believe it."

The Croydon Guardian revealed last week how the council is no longer clamping vehicles parked illegally in the borough's streets, instead opting to remove them and take them to the Stubbs Mead Pound.

More than 4,700 vehicles were lifted from the streets last year - netting the council £700,000.

"Think of the costs," Mr Damodaran said, "They had to take the car away, pass it to a garage to break into, change the locks and it's not an easily accessible car. Then they took it to the auction, sold it, had to buy it back, then deliver it .

"At the end of the day people's council tax is paying for that."

Councillor Phil Thomas, cabinet member for streets and environmental services, admitted that the council had made a mistake and that he was "more than happy" to meet to discuss matters.

Coun Thomas said: "This is a very rare error, but we are, of course, very sorry for any distress or inconvenience caused to Mr Damodaran.

"I'm really concerned about this. It's something that shouldn't have happened and I'm determined to put this right, to the satisfaction of Mr Damodaran.

"Compensation will be paid to him, both for any damage done to his car and to replace any belongings that might have gone missing."