THE High Court has turned down the government's application to appoint independent accountants to oversee government grants made to Aljunied-Hougang- Punggol East Town Council (AHPETC), run by the opposition Workers' Party. But the court also highlighted the gravity of the town council's lapses and raised the possibility of other parties taking legal action.

In his grounds of decision released on Wednesday, Justice Quentin Loh ruled that the Ministry of National Development (MND) had not established legal basis for its court application to appoint such accountants.

But "grave and serious questions" have been raised over the state of AHPETC's accounts and his judgment does not stop any resident or the Housing Development Board from bringing an action against the town council if they wish to, he said.