Salim Mehajer’s opulent western Sydney mansion will soon be up for sale

Disgraced former politician Salim Mehajer’s downfall continued today as he lost a major battle regarding his opulent Sydney mansion.

Salim Mehajer’s opulent western Sydney mansion once featured in a rap video is about to hit the market after he lost a desperate legal bid to block it being sold from under him.

The Federal Court on Wednesday denied Mehajer’s application for an injunction to block the National Australia Bank from selling two of his properties after a judge found it was an “abuse of process”.

The former property developer was in 2018 declared bankrupt owing $24 million to creditors.

The court heard that included a $4 million NAB loan, relating to two Lidcombe properties, which he had defaulted on earlier this year.

Salim Mehajer on Wednesday appeared in the Federal Court in an attempt to block the sale of his western Sydney home. Picture: NCA NewsWire/Joel Carrett.

The bank was now seeking to repossess and sell the two houses, including a six-bedroom, five-bathroom home featuring a Swarovski crystal chandelier, jacuzzi and private sauna.

The 845 square metre mansion was in 2017 advertised for rent at $2950 a week and was featured in a video for US rap artist Bow Wow.

It also boasts a “13 car basement, home theatre complete with massage chairs”.

“Did you know I designed, built and hand picked every single item in the house, from the screws that are (in) the hinges to the light bulb luminosity,” Mehajer wrote in a 2017 Instagram post after he announced he was moving out of the house and putting it up for rent.

The bank is also seeking to repossess another property at nearby Ann Street.

The former Auburn deputy mayor asked Justice Jayne Jagot to grant an injunction so that he could sell the properties himself, despite being in jail.

Mehajer represented himself during the hearing and dialled into the court from Cooma Correctional Centre where he is housed after he was earlier this year jailed for at least two years and three months for lying under oath to further his business interests.

Mehajer told the court that he had been declared bankrupt owing $24 million to creditors, however he disputed that amount saying much of it was “not true and correct”.

He told the court his debt included $10 million to the Australian Taxation Office but said $7.5 million of that was in penalties.

Mehajer’s Lidcombe mansion will soon go on the market after he lost a court bid to block its sale.

The property features a marble staircase which was once featured in a Bow Wow video. Picture: Realestate.com.au.

He also claimed that the $24 million included “random debts that do not exist” including $6.2 million being claimed by a western Sydney demolition company, which he argued had been paid in full.

He further argued that his $4 million debt to the NAB was being exaggerated because he was being charged an inflated interest rate of seven per cent which had added $400,000 to what he owed.

“The only real debt I have here is the NAB debt, less the interest rate applied,” Mehajer told the court.

“To overcome bankruptcy is not an impossible things to do if one understand that the $24 million isn’t correct.”

He went on to say he should be given six months to sell the properties himself to pay back the NAB and that he had enough equity to have his bankruptcy annulled.

“It remains my intention to pay all my genuine creditors in full,” he said.

He claimed he had previously raised up to $70 million in capital adding: “I do believe I have the network available to ensure NAB is paid in full.”

He also offered a family friend’s property as security.

Salim Mehajer’s Lidcombe property which is set to be sold. Picture: Realestate.com.au.

The house features six bedrooms and five bathrooms. Picture: Realestate.com.au.

Rapper Bow Wow shooting his video at Salim Mehajer's Lidcombe home. Picture: Supplied.

But after hearing Mehajer’s submissions, Justice Jagot immediately dismissed the application.

She said that under the Bankruptcy Act, a secured creditor such as the NAB was permitted to take possession of and sell the two properties.

As well, because Mehajer was in prison on a serious indictable offence, the Felons Act prevented him from bringing civil proceedings unless granted leave.

“I am unable to find that the proceedings does not involve an abuse of process or there is a prima facie ground for the relief sought in the application,” Justice Jagot said.

Mehajer was also ordered to pay $15,000 for the legal costs for the trustee of his bankrupt estate.

He will also have to pay the NAB’s legal costs, which will be determined at a later date.