The Independent Commission Against Corruption (ICAC) is investigating whether Maheswaran and fellow Labor councillor Karen Pensabene engaged in blackmail and/or offences under the Surveillance Devices Act while waging a pressure campaign to force then-mayor Matthew Blackmore to resign.
Maheswaran, who also worked as a lawyer for Toplace, told the inquiry the surveillance work had a "tangential" connection to Nassif. He said Blackmore had "linked up" with another individual who Maheswaran believed was targeting him because of his connection to the developer.
The commission heard on Tuesday that Nassif's daughter, Ashlyn, initially raised the payment to private investigator Shane De Kauwe as a personal expense for Maheswaran to cover. However, Maheswaran convinced her Toplace should pay the invoices because he was already owed money.
The hearings, part of Operation Rosny, continue.