Independent Member for Nhulunbuy Yingiya Mark Guyula will retain his seat in the Northern Territory Parliament after the Court of Disputed Returns dismissed a case challenging his election.

The Northern Territory Electoral Commission (NTEC) said it had information that Mr Guyula had been a member of the Milingimbi Local Authority which could make him ineligible to nominate as a candidate in the August state election.

In a statement, lawyer Ken Parish said Mr Guyula was relieved at the outcome.

“Mr Guyula has expressed relief and satisfaction at the dismissal of the Electoral Commissioner’s challenge to his election,” he said.

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