South Tipperary County Council has granted the permission despite having previously issued an enforcement order demanding that all of the houses be demolished and the land restored to its condition "prior to the commencement of the development".
The builder, Liam Campion, has now lodged an appeal with An Bord Pleanála challenging the council's decision to withhold retention permission for the remaining 20 houses.
His Co Laois-based company, Campion Concrete Products Ltd, got planning permission more than two years ago to build a 120- bedroom hotel, an "international trade centre" and 52 holiday cottages on an elevated site at Ballypadeen outside Cashel.