The cash was offering by Caradon after a recent High Court judgement went in favour of the couple. The issue stems from the awarding of planning permissions for a site at Sandways, Calstock, which were later revoked.
However, the Knotts and the district council have also been in dispute over the fact that a garage at Sandways has been used for residential occupation following the revocation orders. Enforcement action was put into place, and the Knotts ended up in front of magistrates in Liskeard, although they were looked upon kindly in the court. They have also received the backing of local MP, Colin Breed.
Julie explained that the money was returned because of fears that, when compensation is paid by Caradon in full, the council would once more make a move regarding enforcement action. She also pointed out that £30,000 was a figure which she and her husband had mentioned around three years ago - before house prices rose.
A spokesman for Caradon said: 'The £30,000 we sent to Mr and Mrs Knott was an interim payment for the revocation and discontinuance of their residential planning permissions at Sandways, Calstock. The council is keen to settle the matter as soon as possible, but will not prejudice its taxpayers' interests by paying more money in advance of a proper assessment of the value of the claim.
Valuations have to be undertaken of the site and details agreed for its reinstatement.
'Mr and Mrs Knott are continuing their unauthorised residence of a building adjoining the compensation site.
Their appeal against the council's enforcement notice to cease that use was dismissed by the secretary of state in December 1997. He gave them 12 months to vacate the building, but they have failed to do so.'
Julie said the money went back in the return post.
She said that she and her husband had taken such a step because they were afraid they would be risking eviction otherwise.