Negendra Selliah, an immigration consultant, says federal Immigration Minister Chris Alexander has damaged his reputation after wrongfully accusing him of  fraud.

On Tuesday, Citizenship and Immigration Canada retracted a statement from Alexander that said the Immigration Consultants of Canada Regulatory Council (ICCRC) had banned Selliah for unethical behaviour.

"Our government will not tolerate immigration fraud and we applaud the ICCRC for taking action," Alexander said last Thursday.

But the complaint against the Toronto-based immigration consultant was actually resolved without any finding of wrongdoing or fault, according to Citizenship and Immigration Canada.

Selliah told CBC News he's considering legal action against the government for smearing his name.

"The minister made a big blunder by putting a statement out without knowing what happened," Selliah said. "The damage has been done ... a retraction isn't enough."

As soon as the error was realized, Citizenship and Immigration Canada said, the statement about Selliah was removed from the department's website.

"Citizenship and Immigration Canada regrets the error and apologizes unreservedly to Mr. Selliah."

Council called 'incapable and inexperienced'

Selliah said the regulatory council was incapable and inexperienced in handling the complaints against him.

"I believe ICCRC sent false information to the minister," Selliah said.

The regulatory council said it wouldn't comment on the matter.

The complaints against Selliah involved his conduct advising clients, quality and advertising of his services and his retainer fee, according to the ICCRC's website.

Selliah has decided to voluntarily withdraw his membership from the ICCRC, even though the allegations have been dismissed.