A Labour donor and head of the Priory rehab clinics has written to the House of Lords Appointments Commission demanding to know why he is not being considered for a peerage.

Dr Chai Patel, from Oxshott, who is chief executive of the Priory Group, protested to the honours watchdog after newspaper reports that his nomination as a Labour peer had been blocked. He claimed his reputation was being damaged by the coverage and asked why it had reportedly objected to his appointment.

Dr Patel was accused of running a care home in which elderly patients were allegedly mistreated and had to face a General Medical Council hearing. But the case was dropped due to insufficient evidence and the GMC cleared him of professional misconduct.

Last week, Dr Patel wrote to the commission after a newspaper claimed the group had advised Tony Blair to take him off the nomination list.

In a letter obtained by the BBC, Dr Patel asked why the watchdog decided to not consider him for a peerage. He said he felt deeply honoured when Mr Blair proposed him for a peerage, but complains that his reputation would be damaged through the withdrawal of his nomination.

There have previously been reports that the commission has launched inquiries into three millionaire Labour donors nominated for peerages by Mr Blair.

Speaking on BBC Radio 4's World at One programme Dr Patel said he now regretted giving money to the Labour Party. He also said he did not want to withdraw his name from consideration as that would indicate that there is something wrong with him.