Britain’s biggest retailer has failed to avoid interest on a £400,000 late payment meant for new schools in East Lothian.
Tesco had argued it did not need to honour the developer fee, agreed in 2008, because it was no longer involved in the housing plan.
When this was thrown out, it tried to avoid almost two-and-a-half years of interest on the payment.
Its claim has now been dismissed a Scottish Government reporter, who noted that early developer contributions were important for building infrastructure with housing.
East Lothian Council insisted Tesco had been given a good deal over the land at its former store in Olivebank, Musselburgh.
It said that, if a similar agreement was struck today, the contribution request would be closer to £700,000.
The council is expected to apply interest to the overdue payment at 4% above the Bank of Scotland rate.
A spokesperson for Tesco told STV: “We are reviewing the decision.”