Real estate agent accused of investing in properties he was selling
Land register records confirm that a company called Wollert Springs Co Pty Ltd placed a reservation on the land in the north of the country in April 2017. It is supposed to make the final payment and take ownership of the property early next year, according to the complaint.
Online real estate listings from the time indicate that Mr. Dandiwal was the broker for the property. The seller of the property, who did not want to be identified, confirmed to The Age that Mr. Dandiwal approached him in early 2017 about the listing of his property. The seller said Mr. Dandiwal was the agent in the sale and received more than $ 250,000 in commission. The seller said he was unaware of allegations that Mr. Dandiwal was part of a consortium allegedly involved in the purchase of his property.
The Real Estate Institute of Victoria said it was aware that the dispute between Mr Dandiwal and his former agents was the subject of legal proceedings.
“Therefore we will not comment, except that within the framework of membership in the institute brokers are expected to adhere to the REIV code of conduct in addition to the regulations for real estate brokers (professional behavior). “Said a spokeswoman.
Mr. Dandiwal’s former agents stated in their lawsuit that they invested large sums of money in at least five other properties identified by Mr. Dandiwal in 2017 and 2018 but did not receive their share of the profits. WhatsApp groups were created to arrange every deal, they said.
Although Mr. Dandiwal’s name does not appear as a director or owner on the companies that purchased the land, his former agents claim that the persons listed as owners or directors were in fact agents who acted on his instructions.
The lawsuit identifies two businessmen as co-investors in several properties that were being discussed by Mr Dandiwal’s alleged syndicate over WhatsApp. One of these properties was in Brookfield, near Melton in the far west of Melbourne. Old online listings show the property was sold for $ 5.5 million in October 2018 with Mr Dandiwal’s PSP Property Group as the seller. The landlord has confirmed this.
In their lawsuit, the former agents allege that Mr Dandiwal approached them a month earlier, in September 2018, to invest in half a portion of the Brookfield property. The agents alleged that a WhatsApp group had been formed to discuss investment amounts, with Mr Dandiwal instructing them where to deposit their money.
A company run by two alleged employees of Mr. Dandiwal then signed a purchase agreement with the sellers of the property.
The same two alleged employees of Mr. Dandiwal also own another company through which it was proposed to acquire property in Mount Cottrell for $ 9.9 million with a settlement date in 2023.
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Land registry records indicate that the company placed a reservation on the Mount Cottrell property in mid-2017. According to the complaint, a WhatsApp group was again established and Mr. Dandiwal’s investment agents were instructed to deposit money into the bank account of a member of the company’s board of directors.
In his filed defense, Mr. Dandiwal denied ever having been the “guiding spirit” or “shadow director” of a syndicate that invests in real estate. He admitted that planned investments were being discussed through a WhatsApp group, but denied that they proceeded as described in the complaint.
The lead plaintiff in the closed civil case, real estate agent Talwinder Singh Dahiya, said he could not discuss the terms of the out-of-court settlement. Judge Jim Delany has not made a decision on costs.
Consumer Affairs Victoria, which is responsible for real estate agent licensing, said it had no way of commenting on individual cases.
Learn more? Contact Richard Baker safely at [email protected]
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