Ray Hadley is being sued by Blue Mountains City Council

Blue Mountains City Council has commenced legal proceedings against the Ray Hadley Morning Show for allegedly defamatory comments, following the recent public inquiry that cleared council of wrong doing.

A council spokeswoman said Hadley made "reprehensible" and "false accusations" about council and its current and former staff, and that the council has served a "concerns notice which is the beginning step of defamation action" on 2GB and Hadley.