Pulling out of a regeneration deal that will see a community market building demolished would cost the council at least £19 million.

Haringey Council confirmed that would be the minimum figure for ending a longstanding deal with Grainger for the redevelopment of the Wards Corner site, which is home to Seven Sisters Indoor Market – also known as the Latin Village.

It said ending the deal would not necessarily mean an alternative community plan for the market would go ahead, as the applicant does not own the site or have an agreement with the landowner, Transport for London (TfL).

It comes after a heated cabinet meeting in which traders from the market criticised senior councillors’ response to a scrutiny review of the scheme and called for their own plans for the site to be considered.

Haringey Council and Grainger – which wants to build 196 new homes and retail space on the site – have committed to providing a new market at Wards Corner and a temporary market across the road while construction work takes place.

But traders opposed to the redevelopment want their own community plan, which is designed to provide improved trading space and protect the culture of the market, to go ahead.

During a heated cabinet meeting on January 21, Haringey’s cabinet member for finance and strategic regeneration Cllr Charles Adje (Labour, White Hart Lane) told traders they needed to discuss their plans with TfL.

The session on the scrutiny review was subsequently cut short by the council leader following heckling from the public gallery – meaning Cllr Tammy Palmer (Liberal Democrat, Crouch End) could not question councillors about the review.

Cllr Palmer said: “Refusing to take questions from councillors is not the behaviour of an accountable and transparent administration.

“As the official opposition, we intended to query why the community plan was not being considered properly and the impact that rejecting so many of the panel’s recommendations would have on scrutiny’s credibility. We believe the cabinet really should have considered these before making its decision.

“Fundamentally, we heard Labour councillors repeatedly insist they felt they owed the traders a ‘duty of care’, but this meeting displayed just how empty those words are.”

Grainger confirmed it was willing to consider incorporating parts of the community plan into its own proposals.

The firm’s associate director, Jonathan Kiddle, said: “We have previously expressed our willingness to engage with those behind the community plan. Our offer still stands.

“We are committed to delivering a comprehensive redevelopment that works for market traders and the wider community and are open to looking at any elements of the community plan that, if viable, could be incorporated into our own plans.”

A TfL spokesperson said: “We are aware that some of the traders at the market have expressed the desire for a community plan for Seven Sisters Market. TfL is contracted to sell the market building to Grainger, and this is subject to the Wards Corner CPO (compulsory purchase order) proceeding as planned.

“The safe operation of the market and the adjacent Seven Sisters Tube station is our top priority, and we are committed to working with the traders and the market operator to improve working and trading conditions in the market.”

Council leader Cllr Joseph Ejiofor (Labour, Bruce Grove) added: “We’re grateful to the scrutiny committee for their work – it’s clear we all agree that the market is a vital part of Seven Sisters, and that there must be a governance and management arrangement that the traders – and all involved – can have confidence in.

“We have agreed a number of the recommendations that are within our control. However, it is important to note that the land the market stands on belongs to TfL, and we are both bound by pre-existing contracts with Grainger.

“The council, though, is committed to playing a positive role in finding a way forward. That is why the council established an independent policy advisory group to identify a viable future management approach for the market.

“The group has engaged with all parties and we welcome their contribution. We will note the report at cabinet in February and are committed to moving forward positively with all those involved in the market’s future success.”