The Staffordshire-based firm JCB's appeal against an order to demolish an executive home it put up without permission has failed. The building at the centre of the controversy is on land owned by the agricultural and business machinery manufacturer at Prestwood, near Denstone.
JCB were originally given permission to convert what was a barn into a company house, but the building was completely demolished because it was deemed to be insecure.
Now planners have upheld an order that the executive housing erected in the barn's place must be pulled down because the firm only had permission for a conversion, not a new construction.
High Court
Planning inspector Derek Thew said the new building harms the openness of the countryside.
He added: "The fact that the dwelling has been built is not a matter that should be given significant weight in determining the planning merits of this appeal.
"To do so would be tantamount to encouraging development without planning permission".
JCB must now either knock the building down by January or take the case to the High Court.
The firm is making no comment about its plans.