A troubled Sydney home builder that surrendered its building licence almost six months ago has collapsed as a new wave of pain hits Australia’s embattled construction sector.
Ajit Constructions was placed into liquidation and a notice of winding up order issued on Monday.
On its website, the company is still boasting: “We ensure your journey of homebuilding is smooth and pleasant”.
But the cracks in the business, led by Amarjit Khakh and based at Riverstone in Sydney’s north-west, were exposed in August last year after customers raised concerns about their unfinished homes and no work being carried out for weeks.
At the time, it was revealed Khakh was on a family holiday in Europe.
According to reports at the time, he sent emails to distressed customers citing the “cash crunch” and being “tight on cashflow”.
Also, he was quoted as saying: “We are trying to keep the business alive as this is all I have. We have stopped our own mortgage payments to pay for the increase of prices with materials since Covid and made many personal financial sacrifices.”
But in September last year, the company surrendered its building licence after numerous cases were lodged with the NSW Civil and Administrative Tribunal by Ajit Constructions customers, who had invested hundreds of thousands of dollars in its home projects.
On Monday, Aaron Lucan of Worrells was appointed liquidator.
Ajit Constructions is the latest builder to join a new wave of construction companies that have buckled under rising construction costs, delays due to record wet weather and crippling labour shortages.
Related: Collapses Almost Double—Melbourne Developer Goes Under
High-end Sydney housebuilder EQ Projects recently called in administrators amid an investigation into one of its buildings. The apartment developer reportedly collapsed owing between $40 million and $50 million to around 500 creditors.
Others construction firms that have recently hit the wall include Perth building company Hamlen Homes with $1.4 million reportedly owed to creditors, Melbourne-based Hallbury Homes with between $8 million and $12 million of outstanding debt and Brisbane builder Pantha Homes and LCD Pty Ltd.
Award-winning Victorian builder Delco Building Group also was placed into liquidation in February reportedly owing $780,000 to 50 creditors and had five uncompleted homes on the go when it collapsed.
