But his comments were condemned by the Royal British Legion, days after the Gurkhas won a landmark victory to settle here following a campaign led by Absolutely Fabulous actress Joanna Lumley.
Deputy BNP leader Darby, who is standing as a West Midlands candidate in next month´s Euro elections, was filmed saying the famous fighting soldiers should be barred from Britain earlier this month.
He had been questioned on the BNP´s stance on the issue and said: "This question highlights the way the British army is opening itself up to become a mercenary army, with so many foreign people serving in it. It´s a bad idea, right, a bad idea.
"Nowhere in the Gurkha´s contracts - all those Gurkhas - does it say that you have a right to live in this country after your service.
"Yes, within reason some of them can stay. But 100,000 people? For Heaven´s sake. It´s not on is it? No."
But Robert Lee, Head of Campaigns at the Royal British Legion, said: "We have made it possible for 186 Gurkhas to live here while they campaigned for justice.
"In that regard we are 100 per cent Joanna Lumley and 0 per cent BNP.
"The Royal British Legion fully supports the rights of the Gurkhas to live in Britain because we feel they would make a long-lasting and valuable contribution to society."
And a spokesman for anti-fascist campaigners Searchlight also criticized the BNP comments.
He said: "It´s difficult to know what is more nauseating, Darby´s prejudice or his hypocrisy.
"In public he pretends to support the Gurkhas, but in front of his bigoted supporters he attacks them as mercenaries.
"The Gurkhas have fought and died for this country for generations, yet even they are not immune from Simon Darby´s vile smears."
The video emerged in the same week BNP leader Nick Griffin was condemned for claiming ´Gurkha ghettos´ would emerge should they win the right to settle in Britain.
But Darby, who previously attracted criticism for calling Ugandans ´spear-throwers´, defended his latest comments about the brave foreign soldiers.
He said: "Look, I don´t want to see a couple of old boys get kicked out, but the idea of 100,000 of them coming over is just unacceptable, there just isn´t enough space.
"It is simply a matter of space. For me the answer is to allow them medical treatment and give them a proper pension, but they shouldn´t be allowed to settle here."
Gurkhas deal risky?
The decision to let all Gurkhas settle in Britain may be reversed -- if Joanna Lumley got her sums wrong, writes Nigel Nelson in people.co.uk.
The Absolutely Fabulous star, who won her fight for 36,000 veterans last week, promised Gordon Brown only half that number will take up their new rights.
"We´ve now put her on her honor," said a Home Office source. "If her figures are right that´s fine. If they are wrong we´ll look at the whole issue again."
Ministers fear new arrivals could hit 100,000 if Gurkha heroes bring families. So their status will be reviewed in two years and permission to come removed if numbers top 15,000.
Home Secretary Jacqui Smith said that amount will cost taxpayers £300 million.
She hinted to MPs there will be a get-out clause if more appear likely to come. The Tories pledged not to cap Gurkha numbers.
Nepal govt called to award Lumley
Meanwhile, Nepal government should honor actress Joanna Lumley with the highest civilian award for winning the retired Gurkhas of the army their residency rights in the UK through a prolonged campaign, a Hindu organization here said on Sunday.
In a statement, Nevada-based Rajan Zed, president of Universal Society of Hinduism, said the 63-year-old Lumley was the public face of the campaign on behalf of the Gurkhas and led a long tiring struggle to success, PTI reported.
He said India should also be proud of her as she was born there. Lumley is also recipient of the Padma awards for her human and animal rights campaigns.
Lumley´s father, who was an officer with the Sixth Gurkha Rifles, and is a vegetarian.
Besides Gurkhas, the British actress has taken up various other causes like that of the exiled Tibetan people, animal welfare and literacy.
The decision to allow the retired Gurkhas to stay in the UK makes about 84,000 veterans, their wives and children eligible to settle in Britain.
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