Zoya Investments directors settle liquidator case for $2 million

Directors of Zoya Investments reached a $2 million settlement with the company's liquidator, ending Federal Court proceedings over alleged breaches of directors' duties and asset transfers. The liquidator had sought to recover funds for creditors after Zoya entered liquidation in April 2024.

The company had leased petrol stations in New South Wales, Queensland, Western Australia and South Australia.

Background of the collapse Zoya faced a default judgment in March 2024 when the NSW Supreme Court awarded $9.3 million to developer Seaforth Securities. The court found a Kanwal service station leaked petrochemicals onto adjacent land planned for a hospital. The Australian Taxation Office is also listed among major creditors, with claims exceeding $4 million.

Settlement terms and creditor outcome Under the agreement, directors Rizwan Rana and Satwinder Singh will pay $2 million. The liquidator accepted the offer after weighing potential defences and the cost of continued litigation. Seaforth Securities director Bruce Johnson said his company received about $300,000 after fees, equating to roughly three cents on the dollar.

"The land is still unsaleable as of today and maybe for the next two years," Johnson said. The Environmental Protection Authority issued a $320,000 fine to the Kanwal station in 2022, which was paid the following year. The station was sold in 2023 to RAS Kanwal Group, also directed by Rana and Singh.

The EPA issued a clean-up notice to that entity in September 2024. Rana and Singh stated that the Kanwal property was already contaminated when acquired and that transfers were made to reduce company debt. The liquidator's allegations were never tested in court after the settlement.