The total debt linked to an Auckland-based property trading network associated with Hills Real Estate has allegedly surpassed $30 million, following the liquidation of two additional companies and the discovery of further potential unpaid tax liabilities.
According to a report by Ben Leahy of NZ Herald, the Inland Revenue Department is understood to be pursuing about $24 million in alleged unpaid tax, largely related to GST from property transactions, across several companies connected to director Rickhil Prakash and associate Vashneel Prasad.
In February, liquidators applied to the High Court to place property trading firm Kiwi Homes 2019 and Hills Real Estate into liquidation. Initial reports suggest total liabilities across six collapsed companies may have reached $30.7 million, while the combined bank balances were reportedly just $38,088, with one company holding as little as $24, as reported by NZ Herald.
Liquidators also indicated that proper financial records may not have been maintained.
“We have been advised by the company’s accountants that no financial statements were prepared,” the liquidators said, as quoted by NZ Herald.
They are now working to trace funds and attempt to recover money, particularly for Inland Revenue, as investigations continue.
Prakash has previously been described as one of New Zealand’s most active property traders, operating a network that included its own real estate agency to facilitate buying and reselling homes.
According to the NZ Herald, Liquidators’ reports have raised concerns about financial dealings within the network, including intercompany loans, overdrawn shareholder accounts, and other transactions. They said they are examining what they describe as “transactions of interest” and “potential related party transactions”.
At a February 19 court hearing, liquidator Craig Sanson said the team would be “following up the books and records of the company and undertaking our investigation,” as quoted by NZ Herald.
No representatives for the companies appeared at the brief court hearing.
Despite the developments, Prakash has remained active in the real estate sector. He and several staff members were reported to have joined another agency shortly before the liquidation hearing, although that arrangement was later terminated. He has since been linked to another firm, while the Real Estate Authority is reviewing whether his licence should be renewed, NZ Herald has reported.
Earlier analysis of property records suggested that some homes linked to the network may have passed through multiple related companies before being sold to final buyers, in some cases changing ownership several times in a single day.
Critics have argued that such rapid trading may have contributed to rising house prices, with some prospective buyers describing their experiences as “heartbreaking” after properties were relisted at significantly higher prices, the NZ Herald has reported.
In separate legal proceedings, liquidators said they obtained freezing orders over Prakash’s personal assets after examining a property transfer to a related company on the same day it entered liquidation, as reported by the NZ Herald.
They also noted issues with compliance during the investigation process, stating the defendants “failed to provide their discovery by the required date”.
When documents were later submitted, the liquidators said they “were not satisfied as to the defendants’ discovery”, as quoted by the NZ Herald.
The matter remains under investigation, and the allegations have yet to be proven in court.
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