Salim Mehajer suffers courtroom blow as he fails to have administrators appointed to two of his companies

PROPERTY mogul and one time deputy mayor Salim Mehajer has had a swift and crushing defeat in court which could have a huge blow on his business empire

IN A huge blow for Salim Mehajer, the Sydney property mogul has lost an appeal to prevent two of his companies falling into administration. The companies reportedly owe creditors almost $100 million.

In a crushing defeat, the judge threw out the former Auburn deputy mayor’s case in just minutes.

The news comes fresh on the heels of Mr Mehajer — who at one time fancied being Prime Minister — renting out his western Sydney mansion.

The case relates to a decision taken in mid June by Kenneth Lee, then a director of the Mehajer owned Sydney Project Group Pty Ltd and S.E.T. Services Pty Ltd, to appoint administrators to both companies.

Creditors were seeking more than $97 million from the companies but they reportedly only had about $32,000 in the bank.

Salim Mehajer arrives to the Downing Centre Local Court in Sydney, Wednesday, August 16, 2017. (AAP Image/David Moir) NO ARCHIVING

At the NSW Supreme Court in June, Mr Mehajer’s counsel argued that the administrators were not validly appointed because at 5.30am on the same day he had removed Mr Lee as a director and replaced him with his sister Khadijeh.

At that hearing Justice Paul Brereton questioned the early hour of the meeting.

“It was Ramadan and people have to get up pretty early if they want to eat breakfast,” replied Marcus Young SC, for the companies.

But the court judge rejected the challenge to the appointment of administrators and made a declaration that it was valid.

Wednesday’s appeal by Mr Mehajer was dismissed by the NSW Court of Appeal minutes after it started after his barrister agreed the challenge could not succeed on a crucial issue.

In the Supreme Court hearing, Justice Stephen Robb said the Mehajers had not established to the “civil standard of proof” that the company minutes recording the changing of the director had been prepared before Mr Lee appointed the administrators.

He also said: “I do not make a positive finding that Mr Mehajer was not telling the truth in the evidence he gave as to his recollection of when the two minutes were signed by him.”

Mr Mehajer was ordered to pay the legal costs of the administrators.

Earlier this week, Mr Mehajer put a cryptic post on his Instagram account. Pictured in the lobby of his Skypoint Towers development in Lidcombe he said: “Never give up, great things take time”.

In April, The Australianreported he was trying to raise almost $18 million to repay debts on the tower.

Last week, Mr Mehajer put his opulent home, which comes with 56 surveillance cameras, a built-in solarium and an aquarium, up for rent.

Former Auburn deputy mayor Salim Mehajer has put his Lidcombe house on Frances St up for rent.

The four storey, six bedroom, five bathroom residence located on Frances St in Lidcombe was advertised on realestate.com.au for $2950 per week.

“Open the doors to a grand entrance where you are greeted by a marble sweeping staircase with curved glass and a custom made Swarovski crystal chandelier,” the advertisement reads.

“If you feel like some fresh air, ride the lift to an exclusive roof top to soak up the sun and admire panoramic views of the city skyline.”

“After 29 years, I’ve decided to leave the suburb of Lidcombe,” Mr Mehajer wrote on Instagram today.

“Born and raised in this street/suburb, I’ve decided to finally rent it out to one luck (sic) family.”

- with AAP.