HERITAGE Victoria has put a stop-work order on the destruction of three trees at the former asylum at Beechworth's Mayday Hills.
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But owner George Fendyk says he only wanted to pull one down to stop it falling onto the nearby three-storey accommodation block which is part of the George Kerferd hotel.
"It's overhanging to buggery and when it falls it's going to hit with five to ten tonnes of force and that is going to crumble walls," Mr Fendyk said.
"It mightn't do it for five years but it's going to do it eventually.
"If it does it's got the potential to kill someone or pull the whole side out."
Mr Fendyk based his plan on a 2011 report from Heritage Victoria horticulturist John Hawker which he says raised concerns about the tree's condition.
However, he did not have a permit to remove it and Heritage Victoria executive director Steven Avery in his October 21 order told Mr Fendyk his work would be illegal given the heritage status of the site.
"You are required to immediately stop," Mr Avery wrote and warned him he could personally face a fine of up to $793,056 if he did not comply with the order.
Mr Fendyk does not feel he should have to get a permit if a tree poses a danger and now plans to leave the brittle gum in situ.
Indigo Shire chief executive Trevor Ierino said a council permit is required to remove any native vegetation and it would be the role of WorkSafe Victoria to assess the safety of a tree.
He said Heritage Victoria was told of Mr Fendyk's plans by several people, including council planning staff.
Mr Fendyk said the tree, near the hotel guests' car park at the rear of the Linaker building which once housed nurses, would have been pulled down with a winch.
"I just was going to take the thing out over the weekend and clean up and be done with it because getting a permit is like going to heaven and back, it's a long process," he said.
The portable saw mill maker says Heritage Victoria is now liable for any damage from the tree.
"If it goes over they are the ones that are in authority as I see it," Mr Fendyk said.
Heritage Victoria did not respond directly to Mr Fendyk's claims, but a spokesman said the order would remain until a permit or permit exemption is issued.
Such a ruling would be made quickly if a threat to property or people was clear.
