By Amit Sarwal and Jitarth Jai Bharadwaj
Amit Miglani, a 45-year-old Indian-Australian business executive based in Melbourne, has made an offer to save collapsed builder Porter Davis Homes (PDH).
It is being reported that Miglani’s firm ‘Mig and Sons’ has officially submitted an offer to the liquidator to buy PDH. If successful, this would mean Mig and Sons getting a complete buyout of business Porter Davis’ assets.
In 2021, Miglani pleaded guilty to charges of withdrawing money from a trust account and fraudulently converting money from a trust to his own use. He was sentenced to a community corrections order with a conviction of 18 months.
It was revealed in Melbourne Magistrates’ Court that Amit Miglani took nearly $100,000 out of his agency’s trust account and used it on luxury cars and pay private school fees, for which the maximum penalty is 10 years in jail or 500 penalty units ($82,610).
Miglani who was the Officer in Effective Control of the now defunct MIG Real Estate was sentenced to a community corrections order with a conviction for 18 months. This requires only 300 hours of unpaid community work.
During the case, it was reported that Amit Miglani’s lawyer told the court the former real estate agent had come from “fairly humble beginnings” in Australia.
Mr Miglani who studied marketing in Australia had an MBA and a master’s degree in information technology, gained permanent residency and became a real estate agent. However, this too was debunked by the prosecutor for Consumer Affairs, James Baker, who clarified in the court that Amit Miglani came to Australia on a student visa as a full-fee-paying student, funded by his parents.
Miglani told local media he intends on keeping all staff employed and completing all contracted jobs.
“Keeping all the jobs, keeping all the sub-contractors and finishing up all the unbuilt, and about 770 or 800 contracts that have been signed and the work hasn’t been started — finishing them as well”.
He further said in a statement:
“Grant Thornton have acknowledged our offer and they know MIG and Sons and our investors are genuine.”
Mig and Sons’ offer is backed by a conglomerate of investors and they are now waiting to hear back from the Porter Davis liquidator.
On 31 March 2023, Grant Thornton Australia was appointed as liquidators of 14 companies in the Porter Davis Homes Group (PDH Group). The liquidators are in talks with more than 20 builders who are willing to help complete some unfinished homes. They have also flagged that up to 250 homes could soon be handed over to customers.
A spokesperson for the liquidator said in a statement:
“For those customers where PDH Is unable to offer handover under the current contract, we expect to be in a position to introduce them to replacement builders within the coming week to discuss how their home build may be completed.”
PDH, ranked as the 12th largest home builder working prominently in Victoria and Queensland, was unable to find a last-minute buyer or financial backer to cover a funding shortfall estimated at up to $20 million.
Victorian Premier Daniel Andrews has refused to rescue Porter Davis and has assured that the government will investigate whether the firm left customers uninsured.