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If your lease does not authorise the freeholder to approve your tenants then I do not see how they can have the right to do this.
The terms of what you and your freeholder can do in relation to your flats are set out in the lease. Often permission is required for a leaseholder to let property to a tenant and this is quite normal.
However this permission is to whether the landlord can or cannot let. I have never heard of a freeholder actually monitoring the tenants who the leaseholder rents his property to.
To have this right, there would have to be something authorising it in your lease. So I suggest you check your lease VERY carefully (and maybe get it looked at by a property solicitor).
If there is no mention in it of their right to do this, then I suggest you write to the freeholder/Management Company pointing out that they have no right to interfere in this way.
If they are difficult about this you could also mention that you are taking legal advice on whether you have a claim against them for your financial losses due to their earlier interference.
I hope this assists and answers your question.