Developer Wilson Bowden and steelmaker Corus had been granted consent to develop the mall as part of a massive regeneration of the 1,100 acre (445 ha) former steel plant, which closed in 1992. In addition, US retail specialist The Mills Corporation has been lined up to develop the retail and leisure element of the scheme.
However, Standard Life, which owns properties in nearby Hamilton, and Land Securities, which owns the retail centre in East Kilbride, complained that the Scottish Executive had ridden roughshod over planning guidance by granting town centre status to what is effectively an out-of-town development.
Lord Kirkwood, who chaired the panel of three judges, said: 'I do not consider that any of the decisions taken by the Scottish ministers in relation to the matters in dispute were perverse or irrational, or failed to have regard to a material consideration.'
The objectors expressed their disappointment at the decision and said they were taking advice on further avenues for appeal. However, Wilson Bowden said it planned to press on with the development immediately.