Auburn deputy mayor Salim Mehajer and business partner sued over alleged breach of directors’ duties

THE legal woes are piling on for Salim Mehajer, who’s now being sued over a former company, but he’s maintaining his innocence.

CONTROVERSIAL Sydney councillor Salim Mehajer is facing yet another legal battle — he’s now being sued with his business partner for almost $700,000 over alleged breaches of duties relating to a former company.

The flashy deputy mayor of Auburn Council, who was made famous by his outrageous August wedding and stayed in the news since thanks to a string of controversies, is being sued in the NSW Supreme Court along with his business partner over an alleged breach of directors’ duties.

Construction firm SM Project Developments was forced into liquidation over unpaid taxes in 2013 owing the ATO and other creditors $890,000.

The company’s liquidator, Anthony Elkerton of Dean Willcocks advisory told The Australian he was pursuing Mr Mehajer and Min Hua, claiming they breached their directors’ duties.

Mr Mehajer told news.com.au SM was a former company he had shares in, and defended his purchase of a key asset of the company, a property at 38 John St in Lidcombe, after it collapsed. He told news.com.au the purchase was legitimate.

“SM went into liquidation. Liquidator advertised the property, so like any other citizen I attended the auction,” he said.

“I was the successful bidder.”

The dispute is the latest in a string of allegations that will bring Mr Mehajer before courts in coming months.

Millionaire property developer and independent candidate for Auburn Council Salim Mehajer leaving Burwood Court. He crashed his $700,000 Ferrari early this year seriously injuring to women whose car he slammed into.

The colourful businessman is reportedly being sued by a commercial finance broker, as well as being called to a Civil and Administrative Tribunal over a claim that he did not adequately disclose all his pecuniary interests which he is required to do in his position as a councillor.

The 29-year-old developer is also defending a series of alleged traffic offences.

Mr Mehajer yesterday took to Facebook to hit out at police over being issued with several traffic notices in recent weeks, telling them to “go after real criminals”.

Mr Mehajer was stopped in Punchbowl on Saturday behind the wheel of his white Ferrari when police issued him with two traffic notices for driving an unregistered vehicle and driving without a licence as well as a defect notice.

Minutes later he was pulled over again by a different police car after allegedly ignoring instructions not to drive and was issued with a court notice.

The alleged traffic offences come weeks after Mr Mehajer was hit with a defect notice for another of his vehicles. He is also due to appear in court next month over an alleged kidnapping threat aimed at the father of a Sydney siege survivor, Bruce Herat.

Previous traffic offences, conduct surrounding his traffic-stopping wedding, and other controversial business dealing have led Mr Mehajer’s critics to call for his sacking from Auburn council.

But a new proposal to restrict who can stand in council elections could take care of that with the political futures of people like Mr Mehajer under threat.

Last night, City of Sydney Lord Mayor Clover Moore gave her backing to a plan that would see property developers and real estate agents barred from standing as local councillors. She will now urge the NSW Premier Mike Baird to bring the ban into force.

Mr Mehajer, whose lavish suburban wedding enthralled Australia, is the general manager of Sydney Property Group.

The company is developing a number of apartment blocks within the western Sydney local government area he represents as a councillor.