Long-disputed deluxe villa in Shenzhen, Guangdong Province was demolished by policemen on Friday. And its owner has filed a lawsuit to local court against the government's decision, reported the Guangzhou Daily on Saturday.

A view of the luxury villa "Sea Palace".

Sea Palace, a private recreation place which floats on the sea, was dismantled in May last year, following a court order after the provincial marine supervision authority concluded it was an illegal building. According to the Longgang district marine supervision authority, it had been approved for fishing and aquatic farming only.

Guo Kuizhang, president of Fashion Group, also the "Palace" owner disagrees with the revoking of the operation license that classifies the floating mini island as base for exploration of oceanic resources. "I'd rather to donate it to government rather than demolish it, " he said.

Guo has filed a lawsuit to Longgang District People's Court and claimed 1 millon yuan (US$152,998) in compensation from Longgang district's Bureau of Agriculture, Forestry & Fishery.

The Bureau said it has not yet received any summon from the local court so far.