After the dispute, the property developer called for the council to foot the bill when it rejected Springfield’s plans to build 316 homes in Ferrylea, Forres in October last year.

Moray Council’s planning committee rejected the proposals due to an increase in the number of units from an approved masterplan.

Dave Main, Springfield’s north managing director, said the decision would also delay plans to build 42 student flats for the same site, which are dependent on the infrastructure of the housing project.

The council rejected the plans despite recommendations to approve the development, The Press and Journal reports. 

The Scottish Government later overturned the decision despite the changes after reporter David Liddell concluded the plans were not “inappropriate”.

However, Mr Liddel has now rejected the company’s application to have their expenses covered amid claims from the housebuilder of “unreasonable conduct” that caused them unnecessary costs. He has since concluded that the authority acted “reasonably” while making its decision.

Meanwhile, an agreement has been made between Moray Council and Springfield to contribute to the extra burden on local services as a result of the added population.

The £1.7 million payment will be used by Moray Council to support dental services, the local health centre, pharmacies, schools, sport facilities, public transport and road improvements in the area.