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Among the many distressed homeowners in a financial jam is the Sikka family, which has an $885,000 home under construction and has already paid $387,000 to the builder. Their house in North Kellyville was scheduled for completion in June this year but remAmong the many distressed homeowners in a financial jam is the Sikka family, which has an $885,000 home under construction and has already paid $387,000 to the builder. Their house in North Kellyville was scheduled for completion in June this year but rem

Families left in the lurch as Sydney building company surrenders licence

Many new homebuyers have reached out to the NSW Civil and Administrative Tribunal (NCAT) after Sydney-based custom home builder Ajit Constructions surrendered its building licence, leaving the families with unfinished homes in various stages of construction.
Branko Miletic
Branko Miletic

28 Sep 2022 2m read View Author

Many new homebuyers have reached out to the NSW Civil and Administrative Tribunal (NCAT) after Sydney-based custom home builder Ajit Constructions surrendered its building licence, leaving the families with unfinished homes in various stages of construction.

According to News.com.au, these families had signed up to build their dream homes with Ajit Constructions many months ago, and had already paid hundreds of thousands of dollars to the builder. However, the builder has left the buyers in the lurch citing cashflow problems with no work done on the projects for months even as the building company owner Amarjit Khakh left on a holiday to Europe.

Having surrendered its building licence earlier this month, the company can now only execute projects valued less than $20,000. Unless the company goes into liquidation, these homeowners cannot make a claim on their home warranty insurance.

Unable to contact the missing builder or see any work progress on their unfinished homes, these families have now approached the NCAT and lodged cases against Ajit Constructions in an attempt to recover their money.

Among the many distressed homeowners in a financial jam is the Sikka family, which has an $885,000 home under construction and has already paid $387,000 to the builder. Their house in North Kellyville was scheduled for completion in June this year but remains at the framing stage with no roof, and no work done for three months, according to the News.com.au report.

Though the Sikkas’ case was heard by the tribunal, senior NCAT member David Goldstein expressed their inability to issue any money orders since the building company was still solvent.

The 11 other homeowners that have also filed cases against the builder were heard by the tribunal but were informed that they could not launch a class action through NCAT. While these families have paid the builder various amounts from $67,000 up to $330,000, their homes remain incomplete and estimates from new builders to complete the work far exceed the initial project costs.

The NCAT will hear these cases again in November this year.

Image: Getty Images

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