The London Development Authority could be forced to pay up to £3m in costs after failing to justify an attempted compulsory purchase of land next to the 2012 Olympic Games site.
Neptune, a property developer, successfully fought off the inclusion of its six-acre London plot in the Olympic Games Compulsory Purchase Order, which has been used to bring together the site for the games.
Neptune was awarded costs at the end of last month and is seeking up to £2m for its legal and professional fees, with an additional £1m being sought by tenants on the land. The level of costs will be agreed in the High Court at a future date.
The LDA had proposed to use the land as a relocation for a bus depot, but this was contested by Neptune as inappropriate.