Alan Craggs, 62, suffered serious muscle damage in a routine operation that went wrong four years ago.
He is now unable to walk long distances on his own and begins to feel pain if he sits still for too long.
But he was approached by the chairman of East Hampshire District Council, Brian Dutton, while he was visiting the offices in Petersfield and told to move his car from a disabled bay.
After explaining that he could not walk properly Mr Craggs said he was forced into lifting his trouser leg to show his scars.
But even afterwards he claims Mr Dutton still refused to back down.
'My leg looks as though an animal has chewed through it,' Mr Craggs said. 'There are huge chunks missing. But even after I proved my condition, the confrontation didn't stop. I asked for an apology but he refused and kept saying I shouldn't have a blue badge.'
Before the operation Mr Craggs, of Glen Dale, Rowlands Castle, enjoyed a career as a motor racer in the FIA Sport Prototype Championship.
'To be honest with you, after it was over I just wept,' he said.
Cllr Dutton said: 'From time to time, able bodied people park in disabled persons' parking spaces and we have to challenge this.
'Unfortunately, on this occasion, a mistake was made. I have offered my written apologies and I am sorry.'