Salim Mehajer declared bankrupt by Federal Circuit Court judge

Controversial jailed Sydney businessman Salim Mehajer has been declared bankrupt by a Federal Circuit Court judge.

Salim Mehajer has been declared bankrupt by a judge in Sydney this morning.

The flamboyant, jailed former deputy mayor of western Sydney’s Auburn has been declared bankrupt after one of his property development companies failed to repay over $200,000 to its creditors.

The Federal Circuit Court this morning ordered Mehajer be declared bankrupt over the debts owed by SM Project Developments, including unpaid taxes.

The ruling means his estate, including his modern mansion in Lidcombe in Sydney’s west, and his remaining property development projects, will be managed by a bankruptcy trustee.

Mehajer has been in prison since late January when he was charged with fraud over the alleged staged crash of his white BMW on October 16 while he was on his way to Downing Centre Local Court to face charges of assaulting a taxi driver.

Mr Mehajer has made three attempts to secure bail, calming his circumstances had “materially changed” — including when The Australian published an interview with one of his cellmates — however each of those applications had been rejected.

Mr Mehajer was previously the deputy mayor of Auburn but the entire council was stood down ahead of a NSW government inquiry into relationships between developers and members of the council.

The directors of SM Project Developments included Mr Mehajer and Min Hua, the brother-in-law and a business partner of former Auburn Mayor Le “Lily” Lam.

The spotlight was drawn to Mr Mehajer and Auburn Council after his August 2015 wedding, which saw an illegal road closure, $50m of supercars, four helicopters and a jet flyover.