Salim Mehajer facing $6m lawsuit with company Ace Demolition and Excavation
SALIM Mehajer is facing yet another lawsuit — this time he is being sued for $6.2 million by the company that excavated the site of his failed unit block development in Lidcombe.
NSW
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SALIM Mehajer is facing yet another lawsuit — this time he is being sued for $6.2 million by the company that excavated the site of his failed unit block development in Lidcombe.
Ace Demolition and Excavation has launched legal action in the NSW Supreme Court against Mehajer over work it did on the disgraced former Auburn councillor’s multimillion-dollar development on John St, known as Skypoint Towers.
The development was set to make Mehajer a fortune but hit a snag when the two companies he used for the development imploded owing creditors more than $100 million, according to documents lodged with corporate regulator ASIC.
Completed in April last year, the development was made up of 141 apartments and 16 commercial spaces and was the biggest development Mehajer had been involved in.
Receivers were appointed to the companies, Sydney Project Group and SET Services, last June.
The biggest creditor was a company known as AET Structured Financial Services, which was listed in creditor meeting minutes as being owed more than $89 million.
Ace Demolition was also listed as a creditor and the company has now taken legal action to secure the amount it claims to be owed.
According to documents lodged in the Supreme Court, Ace demolition is also suing Salim’s sisters Khadijer “Kat” Mehajer and Zenah Osman who were directors of the companies.
In 2016, ASIC banned Mehajer from managing corporations for three years.
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The case was lodged in the court on February 2 and had its first appearance on Tuesday.
Ace Construction is also asking for the court to order the Mehajer siblings to pay interest on the amount and all costs associated with retrieving the money.
Mehajer shot to national attention in 2015 thanks to his over the top wedding, which featured flyover jets and an unauthorised street closure.
The flamboyant property developer is now languishing in jail with his bail refused over a mountain of court cases.
The most recent of which saw him found guilty in the Downing Centre Local Court on Friday of assaulting a Channel 7 reporter when he shut her in a car door, although no conviction was recorded.
Mr Mehajer is still locked in another Supreme Court battle with Cumberland Council over the John St development after it cancelled its sale of the land for the development.
Mr Mehajer was the deputy mayor of the then Auburn Council when he bought the site from the council for $6.5 million in 2013.
However, the council’s general manager cancelled the sale after the state government sacked the council.
Mehajer took the matter to court and on Wednesday it was set down for a seven day hearing to begin on April 26.