UPDATE 4.10pm: Buloke Shire Council has again laid blame for the cancellation of next month's Maitreya Festival at the feet of the event's promoter.
In a statement issued Monday afternoon, the council said despite doing everything it could to assist the promoter Lachlan Bell in what was needed, organisers had simply refused to provide the necessary information to allow council to legally provide a permit.
"The promoter, for reasons that cannot be understood simply decided not to do so and left council without any other option but to follow the law and refuse the necessary licence and permit," Mayor Reid Mather said.
"I am bitterly disappointed that this promoter has chosen to raise the hopes of our community in such a heartless manner and then dash them at the last moment.
"They have left the council in the invidious position of having to enforce the law, or act illegally which would put our entire shire at extreme financial risk and risk the health of the Wooroonook Lakes site.
"Council can't allow its community to be bullied for the sake of large profits for a private company, even when the event would bring great benefits.
"We met with the developer after last year's events and have worked with them to the best of our abilities.
"It is hard to see what else a small shire like Buloke could have done."
Council was last week forced to call in police to stop organisers from unloading materials on the site at Wooroonook Lakes, near Charlton.
EARLIER: The promoter of an electronic music and alternative lifestyle festival has begun VCAT proceedings aimed at forcing Buloke Shire to allow the event to go ahead.
Council last week declined an application by the organiser of the Maitreya Festival, to host the event at Wooroonook Lakes, near Charlton.
The event, which was scheduled for the March long weekend, has run nine consecutive years, including the last three in Buloke Shire.
Mayor Reid Mather said the promoter Lachlan Bell had failed to meet key requirements to be issued with a licence for the event, including an approved planning permit, insurance and traffic and management plans.
But in a statement to Fairfax Media, Mr Bell said has been working with the council since last April and submitted the permit applications in August, but said they were not forwarded on to relevant agencies until January.
He said the event was held on the same site last year using the same experts to fulfil permit requirements.
"We got other options for other sites to run the festival but it would be unfortunate for the locals. We love this location, this community," he said.
"We are 100 per cent willing to work with (council) to create a great community event that can continue in their shire for a long time."
Mr Bell has not responded to Bendigo Advertiser requests for comment.
An online petition calling for the festival to go ahead has attracted more than 2000 supporters.
It claims the event would generate more than $2.7 million over the four days.
Charlton Chamber of Commerce president Peter Gretgrix said he hoped the promoter and council could find a way forward for the event to go-ahead.
"A lot of our business owners have gone out and spent money preparing for stock for the event," he said.
"You have to order things in early - we just thought the shire would look after us and approve it, but it hasn't been the case.
"There hasn't been many objections to the event.
"Last year it was fantastically unbelievable for Charlton and nearby towns. Not all of the businesses, but most of the businesses got something out of it."