Derbyshire County Council submitted a bid to the Heritage Lottery Fund last summer for £10m to restore the castle's gardens, which cover 185 acres of the 325-acre site.
But this week, the Friends of Elvaston Castle, discovered the bid was withdrawn in November - a decision the council failed to publicise.
At the time, the Heritage Lottery Fund had asked the council for more details of its proposals for the gardens, which the authority said would cause it to incur significant costs.
Because the council was not willing to foot the bill to provide in-depth details at what it described as an early stage in the possible development of the historic castle and grounds, it withdrew its bid.
The restoration of the gardens was a key element of controversial plans to redevelop the whole of the Elvaston Castle site, which attracts average 500,000 visitors each year.
In 1999 the council announced it could no longer afford the annual running costs of £500,000 or an essential repairs bill estimated at £3m.
Last June the council voted to give Highgate Sanctuary a 150-year lease, despite public protest, including a petition signed by 61,500 people, and concerns raised during public consultation.
The developer, based in London, aims to turn the castle into an £18m, 160-bedroom hotel and golf course.
Remaining land, including the gardens, would be run by a trust.
The lease, which has not yet been signed, states that Highgate Sanctuary would provide £2.75m match funding needed for a bid to the Heritage Lottery Fund for the restoration of the gardens. It also says that Highgate would relieve the council of the cost of repairing the house.
GrahamMansey, a member of Friends of Elvaston Castle, said he was extremely concerned about the future of the historic gardens under the present plans now that the lottery bid had been withdrawn.
He said: "The council was supposed to make information about the bid public by February at the latest but did not do so, prompting the Friends of Elvaston to contact the Heritage Lottery Fund.
"We would like to see the house, gardens and estate completely restored.
"The Heritage Lottery Fund has informed the Friends that money is available for restoration, including the house, but that this money must benefit as wide a proportion of the community as possible and must not lead to loss of public access.
"We opposed the council's application and expressed this to the Heritage Lottery Fund. We do not agree with the public loss of Elvaston Castle.
"Surely this should be an opportune moment for the community to call time on the disposal of Elvaston Castle."
A county council spokeswoman said that re-submitting the lottery bid had not been ruled out but was unable to give any time frame.
She said: "The council is still seeking the full restoration of the gardens.
"We withdrew the application after the Heritage Lottery Fund asked for more details of our proposals, which would have committed us to significant extra costs at a very early stage.
"We are continuing to work to obtain a sustainable future for the castle and grounds."
It all seems very smelly to me. If the Lottery Fund asked for more details then why not get the Friends of Elvaston involved. I am sure they would have done the bulk of the work for free. But in any case how expensive could it be to prepare a report with detailed proposals.
It strikes me the original lottery bid was a smokescreen done on the back of a fag packet to appease the public.
There is definately more to this than meets the eye. Watch this space.
Chris Sabian,
Peak District View - 2007-03-10 09:17:23