Ken Brook-Chrispin built the new track to bypass narrow Green Lane, in the hamlet of Burley Woodhead, near Ilkley, West Yorkshire.
The move caused rows in the community after he failed to apply for planning permission or consult his neighbours.
A retrospective planning application has been rejected by Bradford Council.
The council has ordered Mr Brook-Chrispin to get rid of the road, which was built at the cost of hedgerows, dry-stone walls, trees and other vegetation.
'Goodwill gesture'
Mr Brook-Chrispin, director of Seabrook Crisps, came up with the road plan after he moved into a property at the top of Green Lane and found it too narrow for two vehicles to pass at the same time.
Farmer Michael Green, whose listed property Turnpike Farm had been damaged by vehicles trying to pass the building, gave Mr Brook-Chrispin permission to build a new track across his land.
The council was informed after some residents raised objections.
In a statement released on Friday, Mr Brook-Chrispin said he would comply with the council's orders.
He said: "I entered into this project with the best interests of the community at heart.
"For years the track to Burley Woodhead has been an issue - it is so narrow that an ambulance or fire engine cannot get through.
"It has been the subject of many community meetings and the only thing stopping something being done about it was the potential cost."
'Giant scar'
Mr Brook-Chrispin said he decided to build the road as a "gesture of goodwill to the local community".
He said: "However, while I might not agree with the red tape and regulation, I do respect the council's rulings.
"I am therefore in the process of soiling and grassing over the work that has been done, as well as fencing it off and planting new shrubs and hedges.
Mr Chrispin said the majority of residents had supported the "improvement".
Councillor Matt Palmer, who campaigned against the road, said: "It doesn't matter if you own a large company, you still have to follow the correct procedures.
"The road that has been developed has left the roots of trees exposed and has caused flooding problems with the beck. It's left a giant scar on the landscape, he's done it without regard for the local environment.
"He will have to do a lot of work in order to ensure it goes back to its original condition."
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