Plans for a major mixed-use development on the site of the former Ram Brewery in Wandsworth, south west London, have been called in by communities secretary Hazel Blears.

The £1bn scheme, which is led by investment and development company Minerva, received planning consent from Wandsworth Council in December 2008, as well as being given the backing of London mayor Boris Johnson. A riverside walk, two public squares and a viewing gallery are among the plans, which will see the creation of more than 1,000 new homes and 238,000sq ft (22,111sq m) of retail, restaurant and commercial space. A micro-brewery is also planned.

Minerva has said that it will continue to press ahead with the project despite the setback, although Wandsworth Council has accused Blears of threatening the regeneration of the area. The council's leader, Edward Lister, said: "It's unbelievable that in the depths of a recession, we have a minister that would put at risk £1bn of investment in the town centre. The Ram Brewery development would have been the catalyst for the wider regeneration of Wandsworth town centre.

"Now everything goes on hold while the minister and her officials get around to looking at the scheme. This delay could put the scheme back several months at least."