Northamptonshire Police have concluded that there is insufficient evidence to justify a prosecution over the sale of land by Corby Borough Council in 2010.
A spokesman for the force said: “Northamptonshire Police have conducted a thorough and lengthy inquiry into allegations surrounding the sale by Corby Borough Council of land on the town’s St James industrial estate in 2010, a site which was subsequently developed by Tesco.
“As part of that inquiry, the Force has been working alongside the Crown Prosecution Service to determine whether any criminal offences were committed in that process.
“After careful consideration, Northamptonshire Police has decided there is insufficient evidence to justify a prosecution and, as a result, no further action will be taken on this matter.”
The announcement was welcomed by Cllr Tom Beattie, Leader of Corby Borough Council, who said: “It is very pleasing that the Police and Crown Prosecution Service have decided after a very thorough investigation to take no further action on this matter.
“Whilst disappointed at the length of time this has taken, I was always confident of the outcome. We have co-operated fully with the Police and have satisfied all of their requests for information, much of which are in the public domain. We have implemented the 2013 recommendations of our external auditors, KPMG, who provided a report on the matter and, as a consequence, the council is now in a much better place.
“We are a good council, which is improving and getting better, and we are on a sound financial footing. Lessons have been learned.”
In its public interest report KPMG found that the council's arrangements for managing significant capital regeneration projects were flawed and the authority may have breached its statutory obligations.