MSN Homes’ collapse leaves homes unfinished, customers thousands out of pocket

Former customers are living a nightmare as they try to salvage anything they can out of the trail of devastation left in the wake of a Brisbane builder’s collapse. WATCH THE VIDEO

The collapse of a Brisbane building company has left homes unfinished, others riddled with defects and customers thousands of dollars out of pocket.

Administrators were in May appointed to MSN Properties Pty Ltd — trading as MSN Homes – with ASIC documents revealing the company owes 27 unsecured creditors more than $1.5m and the Australian Taxation Office $230,000.

Now former customers are living a nightmare as they try to salvage anything they can out of the trail of devastation left in the wake of the builder’s collapse.

Mandeep Narang, MSN Homes director at his former office. Photo: supplied

Documents lodged with the Australian Securities and Investments Commission listed the company’s director as Mandeep Narang of North Lakes.

Mr Narang is also a director for MSN Enterprise Group Pty Ltd, which is listed as a creditor and on June 14 also fell into liquidation, with Business Reset liquidator Jarvis Archer appointed to both companies.

Nightmare after home left unfinished

What was supposed to be a six-month build has turned into a three-year nightmare for a Griffin family after the dramatic collapse of the Brisbane builder, leaving Rajinder Kumar with an unfinished home.

Mr Kumar and his wife Priya Verma, who moved to Queensland 2018 to build their dream home, signed a fixed contract with MSN Homes for over $500,000 in November 2021.

It didn’t take long for things to start to unravel for the family.

“After the slabs, it took another three to four months for construction to start again, he did not do anything and I went to the QBCC,” Mr Kumar said.

“After that he started and he put the frame and I say I am not going to give you money until I have it from you written that you finish this house.”

Rajinder Kumar with his shell of his home at Griffin left half built by collapsed builder MSN Homes, for which he has been paying the construction costs for the last three years. Picture Lachie Millard

The couple and their two kids have been living in a rental while awaiting the construction of their home, and had since been paying mortgage repayments along with rent.

“When we started and signed, he said the house would be finished in six months, and more than three years later and after not doing anything when I asked (it remains unfinished),” Mr Kumar said.

In August 2023, the couple terminated their contract, alleging the builder was in breach of several contractual agreements.

In a legal letter obtained by The Courier-Mail, sent by Mr Kumar’s lawyers to MSN Homes, it is alleged the company had failed to proceed with works with reasonable diligence and failed to maintain reasonable progress.

It also alleged a breach of contract warranties and that the performance of the works was not undertaken in an appropriate and skilful way.

In the letter, it also alleges MSN Homes had unlawfully suspended the works, in that there had been no progress on the job since July 6, 2023, and no extension of time claims or lawful

suspension notice had been provided to the customer.

The letter further alleges MSN Homes was unwilling to progress the works diligently or had otherwise abandoned the contract, with the builder allegedly failing to remedy the breach works before September 20, 2023.

Rajinder Kumar walks through the shell of his home. Picture: Lachie Millard

MSN Homes collapsed before Mr Kumar was able to resolve the ongoing issues with the builder, leaving the couple in the dark and without answers.

He says he has paid over $300,000 for half a home.

“I believe only $100,000 of work has been completed, frames have rust on it and roof is damaged and leaking and all windows incorrect sizes,” he said.

“I’ve paid over $300,000 and $20,000 cash payment with no invoice for the cash.”

All that Mr Kumar has to show for the past three years is partly rusted frames, yellowboard tiling and windows, while beams, tiles and other construction materials litter his front yard.

Mr Kumar is now relying on the Queensland Building and Construction Commission insurance scheme to help him complete his home, but fears he will be left out of pocket for some of the damage incurred to the structure.

“QBCC came in and deemed what was the worst damage and the ones they think are fine and are only taking what’s needed to remain in the budget,” he said.

Mr Kumar intends to take further legal action against Mr Narang.

In the 2022-23 financial year, the QBCC has covered 150,164 residential construction projects under the home warranty scheme.

During this time, claims under the scheme to the value of $68.6m were approved, including $47.5 million for non-completion claims, $17.3 million for defective work claims and $3.8 million for subsidence claims.

Homes littered with a 100 defects

A MSN Homes customer who wants to remain anonymous has revealed her home, which took two years to complete, is now riddled with over 100 defects.

“You can tell the workmanship was faulty and it was rushed and they were just trying to pull it through just to get it across the line,” she said.

A Brisbane homeowner has found defects with her home built by MSN Homes as the company falls into liquidation. Photo: supplied

Photos supplied to The Courier Mail show cracks in paintwork and outdoor window sealings.

“We have been working with MSN all the way until they went under in trying to fix these defects, so now we are in the position where after all that we still have to go to QBCC,” the homeowner said.

“Painting is still not finished, there are so many defects in our painting and there is a list of other defects at least 120 items long.”

Cracks in the ceiling and paint work have appeared in a Brisbane home built by collapsed MSN Homes. Picture: Supplied

Variation payments paid but no home

Mohammed Shameem and his partner Sazia Shameem signed a contract in June 2021 and paid a 5 per cent deposit of $17,349 to MSN Homes.

A year later and no start in construction in sight, Mr Shameem alleges Mr Narang demanded $56,198 upfront for variation costs related to the build.

In a termination letter provided to The Courier Mail, it shows Mr Shameem paid $73,547 for no home including variation costs.

“He didn’t do any work and I was charged with the variation work,” Mr Shameem said.

Mr Shameem said Mr Narang demanded upfront payment for the variations costs that were said to incur on building the home in Park Ridge.

“What was not right was that it also stated that payment is required within seven days. The manager at that time informed me verbally that without this payment they will not proceed to plan changes, colour, electrical and tiling,” Mr Shameem said

“Then we were invoiced for this variation and we had to pay to move the job forward. It was illegal of them to ask for funds beside the 5 per cent deposit before construction begins.”

The contract between Mr Shameem and MSN Homes was terminated by Mr Narang in February 2023.

Inside the collapse of MSN Homes

Administrators were appointed in May to MSN Properties Pty Ltd — trading as MSN Homes — which, according to ASIC documents, owes 27 unsecured creditors $1,552,489 along with an outstanding ATO bill of $230,000.

Documents lodged with the Australian Securities and Investments Commission listed the company’s directors as Mandeep Narang of North Lakes. Mr

Narang is also a director for MSN Enterprise Group Pty Ltd which had been listed as a creditor and also went into liquidation on June 14.

According to the Queensland Building and Construction Commission, MSN Homes had its low rise builder licence cancelled on July 12, 2023 for “failure to satisfy financial requirements”, with the suspension lifted on July 21, 2023.

The company had logged 18 jobs for the 2020-2021 financial year, to the value of $4,813,181, and in 2021-2022 it had 25 jobs totalling $10,653,009.

MSN Homes’ website has been removed, but the company had previously advertised “turn key packages” between $200,000 to $300,000 across South East Queensland.

Their website had said a $3000 initial deposit was to be paid by clients to “get things ready for your build”.

The headquarters of MSN Homes.

Former MSN Homes sales consultant Amandeep Singh said he sold between 10-15 home and land packages for MSN Homes and was yet to receive $5000 in commission.

Mandeep Narang has been contacted for comment.