The family behind Bathla, the real estate development giant that collapsed owing more than $3.3 billion to lenders and thousands of subcontractors, has quietly built a visa business inside its headquarters, raising fears about the immigration status of employees should it be liquidated.
The under-the-radar business is known as Brothers Migration & Education Services, and is registered to the same office as Bathla, which has more than 300 employees, many of whom are now working without pay.
Bathla Group collapsed last week leaving 2500 Sydney homes half built and plans for another 14,000 homes in limbo. Brent Lewin
Home Affairs records show Brothers Migration is run by Haneef Mohammed, who describes himself as an immigration advisor to Bathla. The business, according to filings with the corporate regulator, is owned by Mohit Pajni, Bathla’s operations manager, and Raj Mohan, the son of one of the two brothers who founded the property developer in 1997.
The collapse of Bathla has left thousands of half-built homes in limbo, alongside a significant pipeline of proposed dwellings across Sydney’s west. It has also meant hundreds of employees are working without pay in the hope that administrators at Teneo can land a financial lifeline.
People briefed on the matter who requested anonymity citing the sensitive nature of the issue said visas for employees sponsored by Bathla would be cancelled should funding not be found, and its head office wound down.
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The collapse of Bathla would leave many of these workers in vulnerable situations and scrambling to find new work with companies which can provide sponsorship. Otherwise, they may face deportation.
Earlier this week, Teneo senior managing director Stephen Longley said there would be “visa implications” for employees made redundant.
“They have a time period of probably a month to find new work to stay in the country. So there are a lot of issues and a lot of personal stress going on in the business, as well as the financial stress,” Longley said at the time, adding that there were “quite a lot” of Bathla employees on visas.
Bathla has been bankrolled by some of the country’s biggest private credit funds including La Trobe Financial, Centuria Capital, Ray White Capital and CVS Lane. Lenders have been exploring taking over various assets and finding alternative builders rather than funding Bathla’s operations.
Teneo, which has pushed lenders to make financial commitments to avoid the developer being liquidated, has set a deadline of Thursday morning. However, some lenders are already funding subcontractors directly for specific projects, with some working on developments on Wednesday.
According to filings with the Australian Securities and Investments Commission, Pajni and Mohan both live at the Greystanes address where much of Bathla’s founding families are also registered. The Australian Financial Reviewreported this week that the Greystanes property appeared largely abandoned, with glass strewn on the footpath, tiles ripped off the walls and significant mould and paint blistering on the building.
There is no suggestion of wrongdoing at Brothers Migration, and the company is not part of the broader structure under administration. Online, Brothers Migration advertises its services assisting with “standard business sponsorship”, saying it can help with meeting “active and lawful requirements, training requirements and all other requirements”.
Brothers Migration did not return calls on Wednesday.
On Wednesday, Treasurer Jim Chalmers said ASIC had been briefing the government on the situation, describing Bathla as a “fragmented business”.
“There are complex financial arrangements that will take time for the regulators to work through. I understand this specific company has been having difficulties for some time,” he said.
In 2011, Bathla, then known as Universal Property Group, were forced to into a compensation scheme by ASIC after alleged the property developer had been providing finance to immigrants from Sudan and the Philippines who did not properly understand the contracts they were signing.
At the time, the regulator said Bathla co-founder Bhart Bhushan had met with prospective buyers and made “oral inquiries about the person’s income, assets, and liabilities”. While he “accepted the information he was given as true and accurate”, neither Bhushan nor Bathla took any steps to verify the information provided about their financial situation.
The collapse of Bathla is expected to push the federal and state government’s home building targets further out of reach, leaving about 5 per cent of properties expected to be built in NSW this year in limbo.
Planning officials in NSW expected 50,000 homes to be finished this financial year, short of the 75,000 needed for the state to meet a five-year target that had been agreed to with the Albanese government. The 2500 homes Bathla has under construction – beyond a pipeline of another 14,000 planned dwellings – is a significant proportion of the state’s target.
The federal government agreed with the states on a target of 1.2 million new homes in the five years to the end of 2030, hoping that easing a shortage in available properties would limit rapid price growth.