Gazal saga takes new turn with Legal Aid application

Gazal
Helm Advisory managing director Stephen Hathway.

The ATO’s pursuit of developer Nahi Nasri Gazal took a curious turn yesterday that will interest – or infuriate – the various insolvency practitioners appointed to wind up his debt-shackled development group after the man himself turned up unrepresented in court to advise he had applied for Legal Aid.

Wheelchair-bound, accompanied by a bewildered helper and seemingly afflicted with uncontrollable tremors, Gazal told the court that he needed time to engage legal representation to defend himself against claims being brought by the Deputy Commissioner of Taxation (DCoT).

Gazal told the court he did not understand the claims. To that end he told the court he had made an application for Legal Aid, which presiding judge Ashley Black said may be difficult to obtain due to the civil nature of the proceedings being brought against him.

Wheelchair bound and shaking, Gazal told the court he was developing dementia and after the hearing was observed to operate the wheelchair erratically.

The hearing related to an application by the DCoT to adjourn a scheduled hearing to allow it more time to prepare evidence in respect of claims against the developer.

Counsel instructed by KL Gates for the DCoT told the court that as the claims have a criminal aspect they require a higher burden of proof.

The matter relates to Westmeat Development Pty Ltd, one of numerous entities linked to Gazal which have failed to complete ambitious development projects but succeeded in extracting tens of millions of dollars in GST refunds from the ATO in a manner which at least one practitioner appointed to wind up various Gazal group entities has identified as fraudulent.

” …. my investigations to date indicate that the Company was part of a larger group that
was conducting GST fraud, so it is likely that no legitimate business operated from the onset,” Westmeat liquidator Stephen Hathway told creditors in a report distributed last week.

When contacted yesterday Hathway questioned how a person living in a rented, three bedroom high rise apartment in The Rocks as Gazal does could be deemed eligible for Legal Aid.

As liquidator of related entity Albittar Corp Pty Ltd Hathway is also chasing two valuable automobiles – a red Mercedes Benz SLS AMG and a silver Porsche 911 GTS – for which he obtained ex-parte search and seizure warrants pursuant to section 530C of the Corporations Act 2001 from Justice Elizabeth Cheesman of the Federal Court on May 1 this year.

The parties yesterday agreed to return in February next year, the DCoT having lodged a proof of debt for more than $5.2 million in the liquidation of Westmeat Development, a figure that according to Hathway’s November 5 report to creditors has been accumulating since at least 2020. Way to go, ATO.

1 Comment on "Gazal saga takes new turn with Legal Aid application"

  1. It would be unusual for legal aid to be granted in respect of a creditors petition and in any event: firstly, the making of application does not give rise to a stay under the NSW legislation; secondly a stay of NSW proceedings may arise if there is refusal of aid and it is sort to be reviewed – leaving aside whether a state legislation stay of proceedings would operate in federal jurisdiction proceedings.

Leave a comment

Your email address will not be published.


*