LAUTOKA City's special administrator Praveen Bala says that land given to the Tappoo Group and P. Megjhi Ltd for major capital developments were not sold.
He said the areas in Shirley and Churchill parks being developed by these companies were leased for substantial sums.
"Due process was followed with advertisements placed in the newspaper last year for expressions of interest in leasing both properties and no one came and saw us or objected to any of the proposal," he said.
"As far as the council is concerned, we followed procedure and any claims to the contrary are simply not true."
Mr Bala said the development of both properties would provide employment and increase revenue for the council.
"As a result there will be an improvement of facilities that will benefit everyone in Lautoka.
"In the Tappoo City development, we received an advance of $1.4million and this will be used to develop an athletics track inside Churchill Park."
Mr Bala said the council was in a difficult position financially with $5.7m in rates arrears so the lease money from both properties would assist in the better delivery of services to residents of Lautoka.