Minister Michelle Rowland seeks action for Qartaba victims

Michelle Rowland has demanded the corporate regulator fund a liquidation probe into ‘sharia-compliant’ developer Qartaba.

Customers of collapsed Qartaba Homes's ‘sharia-friendly’ development scheme outside its directors' homes in northwest Sydney. Picture: Alexi Demetriadi

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Communications Minister Mich­elle Rowland has demanded the corporate regulator fund a liquidation probe into disgraced ­“sharia-compliant” developer Qartaba Homes, whose 2024 collapse left hundreds of families ­financially devastated.

The minister’s intervention, in her capacity as the federal member for Greenway, where some of the firm’s land and victims are based, comes after The Australian revealed how Qartaba’s three directors targeted members of their own community while living a life of luxury.

Ms Rowland recently wrote to Australian Securities & Investments Commission chair Joseph Longo demanding urgent support for liquidator Worrells to complete its probe into Qartaba and its associated entities, which are all believed to have breached elements of the Corporations Act, including allegedly trading while insolvent.

“I am advised that the liquidator has indicated they are unable to investigate further whether there has been a breach of the (Corporations Act) unless it is resourced to do so,” Ms Rowland wrote. “I am writing to ASIC to request that it fund the liquidator, given the sequence of events, which has led to these families unfairly losing their homes.”

While Ms Rowland’s intervention will do little to placate customers – many of whom stand to lose their life savings, some upwards of $350,000 – the request from a senior government figure adds to pressure for investigations into Qartaba to continue.

The regulator has yet to ­respond to the request.

Communications Minister, and member for Greenway, Michelle Rowland. Picture: Martin Ollman

“I understand Hume Homes (a Qartaba associated entity) took a high interest loan of nearly $50m from Grosvenor Street Services in September 2023, using the homes of families as collateral at a time when the land had effectively (been) fully developed,” wrote the minister, whose electorate takes in the firm’s failed Box Hill development.

Hume Homes’ suspected ­insolvent trading date was ­November 2023 – two months after taking the $50m loan. Ms Rowland said the liquidator was ­investigating “voidable” transactions by the firm, which take place in the lead-up to insolvency and can include unfair loans.

“The affected families are incredibly distressed, and the status of whether the liquidator will be funded to conclude their investigations into voidable transactions remains unclear,” she said.

Ms Rowland told The Australian that Qartaba customers in her electorate had invested their “hard-earned money” to build a home. “What happened here is appalling, and I will fight on the community’s behalf for relevant authorities and the liquidators to investigate,” she said.

“This is about exploring every avenue to reduce the financial impact and to ensure justice in ­accordance with the law.”

ASIC is investigating Qartaba but a spokesman would not comment, saying only that it was “aware” of concerns and was “considering the issues carefully”.

Qartaba Homes directors Kashif Aziz, left, and Wajahat Rana.

Qartaba Homes co-director Khurram Jawaid. Picture: Supplied

ASIC administers a grant program that allows liquidators to seek funding, which it is understood Worrells is applying for, although the process is lengthy and remains confidential between the two parties.

In February, The Australian revealed the sprawl of lavish homes and investment properties enjoyed by Qartaba directors Wajahat Rana, Khurram Jawaid and Kashif Aziz. Although customers last month protested outside the homes of Mr Rana and Mr Jawaid, the whereabouts of Mr Aziz remain unclear. He no longer lives at his Kenthurst family home, which is being rented out for upwards of $1000 a week. He returned to Pakistan in January, telling acquaintances he would be back “soon”.

Mr Aziz owes thousands to members of his local community for unpaid repair works.

A petition at federal parliament calling for stronger laws on property sales through instalment contracts is nearing 1000 signatures and on Sunday victims took to a southwest Sydney mosque frequented by Qartaba’s directors to push for answers.

The Australian understands that there were “heated arguments” between customers and mosque leaders, with police called to diffuse tensions. No one was arrested.

Nazim Chaudhry leads fellow Qartaba customers at a rally outside the home of Wajahat Rana in February. Picture: Alexi Demetriadi

Customer Nazim Chaudhry, who is owed $260,000 by Qartaba, said victims were losing hope.

“(We) are losing patience as no law-enforcement body seems to take notice of the issue that has devastated the lives of hundreds of families,” he said.

Qartaba had spruiked itself as the housing market’s “interest-free answer”, predominantly targeting customers of South Asian backgrounds. It offered sharia-compliant payment options ­before it collapsed in October.

Worrells blamed “poor financial management, excessive reliance on over-borrowing – some loans came with interest as high as 26 per cent – a lack of accurate financial information, and too many projects” for the unravelling of the scheme, which owed upwards of $200m to lenders.

Qartaba would buy land before selling it to customers for off-the-plan homes. Customers would pay a deposit and then monthly development costs or land payments of about $4000, which would be ­interest-free.

Customers completed their payments years ago, but their lots were never developed or transferred into their name.