A string of legal battles in the NSW Supreme Court has revealed Bathla Group, a prominent Sydney property developer, missed multiple settlement deadlines on land purchases worth $130 million, forcing one seller to finance the sale himself.
Property developer Bathla Group, once reporting billions in assets, faced multiple legal actions from land sellers over missed settlement deadlines, according to an ABC News examination of court records. The disputes involved transactions worth a combined $130 million.
In one case, seller Michael Ryan entered into a put-and-call option agreement with a Bathla subsidiary in 2021. After Bathla exercised the option, settlement deadlines were repeatedly missed. The NSW Supreme Court ordered the purchase to complete, but Bathla failed to meet that deadline too. The judge described Bathla's evidence of ability to complete as "flimsy and unconvincing" and noted founder Bhart Bhushan's lack of explanation for non-compliance. Eventually, Mr Ryan had to lend Bathla money to facilitate the purchase.
Penny Cable, a lawyer representing Mr Ryan, told the ABC the delays were frustrating, with one attempted settlement collapsing when the financier pulled out at the last minute. "We were ready to go all day, and then at four o'clock they pulled the pin and said, 'Financier is not coming to the party,'" she said.
Court documents revealed two other cases where Bathla-connected companies failed to complete purchases: a $20.6 million deal and a $70 million agreement that led to liquidation.
Trevor Loewensohn, co-founder of private credit firm Alceon, said Bathla expanded too quickly in its later years, buying property faster than it could digest, leaving it cash-flow tight. Alceon had stepped up oversight by late 2024.
Bathla's 2024-25 financial statements showed a $62 million after-tax profit but a $150 million operating cash outflow, relying on $160 million in borrowings. The company entered administration in August 2025.
Analysis
Why This Matters
- The legal battles show that even when developers offer high prices, sellers may face protracted delays and additional costs to finalise sales.
- The cash flow problems behind reported profits highlight the fragility of developer balance sheets, relevant to anyone in the property market.
- The case could lead to changes in how developers secure financing and how purchase agreements are structured.
Background
Bathla Group, founded in 1997 by Bhart Bhushan, was a major residential developer in Sydney's north-west. It reported assets of $2.59 billion in 2021-22 but struggled to settle land purchases in subsequent years, leading to court-ordered completions, refinancing, and eventual administration in August 2025.
Key Perspectives
Penny Cable (seller's lawyer): described the delays as frustrating, with one settlement collapsing at the last minute when financing fell through.
Brian Silva (insolvency specialist): said repeated delays in settling purchases could be a sign of deeper financial problems, and profits may not reflect cash flow constraints.
Trevor Loewensohn (lender co-founder): believed Bathla expanded too quickly, buying more property than its cash flow could support.
NSW Supreme Court judge: called evidence of Bathla's ability to complete a purchase "flimsy and unconvincing" and noted the founder's failure to explain non-compliance.
What to Watch
- The outcome of receivership: whether assets are sold and sellers receive payment.
- Potential for further legal claims from other sellers or creditors.
- Any regulatory scrutiny of developer financing arrangements.
Checked
12 claims in this story checked against 1 source: 7 supported.
Show each claim
- SupportedThe three property-related transactions involved a combined $130 million.Just In: “An ABC News examination of court records has identified three major property-related transactions worth a combined $130 million”
- SupportedMichael Ryan had to effectively lend Bathla money to complete the purchase.Just In: “Mr Ryan, the seller, had to effectively lend Bathla money to complete the sale.”
- Not in the sourcesBathla Group is a prominent Sydney property developer.Just In: “Bathla offered top dollar for land, but some sellers fought to be paid.”
- Partly supportedCourt documents detail cash-flow issues despite reported profits.Just In: “Court records on the case show that the Bathla-linked purchasing entity was having trouble securing the money needed to complete the sale to Mr Ryan.”
- SupportedAfter the NSW Supreme Court ordered the purchase to complete, Bathla missed that deadline too.Just In: “Mr Ryan then took the company to the NSW Supreme Court, which ruled that the purchase should complete that November. That deadline was missed as well.”
- SupportedThe judge described Bathla’s evidence of its ability to complete the purchase as “flimsy and unconvincing”.Just In: “The judge described the evidence of the company's ability to complete the purchase as "flimsy and unconvincing".”
- SupportedPenny Cable said: “We were ready to go all day, and then at four o'clock they pulled the pin and said, 'Financier is not coming to the party,'”Just In: “"We were ready to go all day, and then at four o'clock they pulled the pin and said, 'Financier is not coming to the party,'" she said.”
- SupportedA Bathla subsidiary failed to complete a $20.6 million purchase.Just In: “In one, another Bathla subsidiary — UPG 318 — failed to complete a $20.6 million purchase for another Box Hill property.”
- Partly supportedA $70 million agreement led to the purchaser’s liquidation.Just In: “In another case, Raj & Jai (Mudgee) Pty Ltd defaulted on a $70 million agreement to acquire interests in a partly developed residential estate in regional NSW. ... Less than a month later, Raj & Jai (Mudgee) was renamed Mudgee Properties and entered liquidation.”
- Partly supportedBathla’s 2024–25 financial statements showed a $62 million after-tax profit.Just In: “Despite reporting a $62 million profit in 2024–25, the group recorded a $150 million operating cash outflow”
- SupportedThe financial statements showed a $150 million operating cash outflow and $160 million in borrowing proceeds.Just In: “the group recorded a $150 million operating cash outflow, while receiving $160 million in proceeds from borrowings.”
- Sources say otherwiseBathla entered administration in August 2025.Just In: “When Bathla entered voluntary administration in August 2026”