Re: meter relocation
Get the electrician to get the inspector to cite chapter and verse of the code being used to call this a violation. There must be a service disconnect, but it need not be at the meter. If the breaker panel has a main breaker that shuts off the entire panel, then that constitutes the required "service disconnect."
However, there is a possible twist to the story. If the distance (i.e., internal to the house) from the meter to the panel is "too long," then some jurisdictions require a separate disconnect to be installed. The question of "how long is too long" varies from state to state, and city to city. That may be the source of your issue.