If you put money down on an off-the-plan place with Bathla, you are now waiting for answers. The Sydney developer, co-founded in 1997 by Indian-born brothers Bhart Bhushan and Rajinder Mohan, announced on Aug. 25 it was entering voluntary administration and appointed Teneo Australia to try to restructure the business or wind it down.
Across roughly 25 years, Bathla amassed roughly 22,000 apartments and 3,500 houses in its portfolio, concentrated in western Sydney. It started with five townhouses in Girraween and leaned into a family-friendly brand, staging galas that raffled A$1 million in cash and properties and sponsoring a local rugby team. Bhushan previously drove a taxi before moving into property, according to local reporting. The company also drew scrutiny in 2011, when Australia's corporate regulator alleged "unconscionable conduct" in lending to buyers between 2004 and 2009; Bathla agreed to an enforceable undertaking to compensate victims who came forward.
The finances grew fragile as the cycle turned. In the 2025 financial year, total borrowings climbed 7% to A$2.85 billion, and A$1.99 billion of that fell due inside the next 12 months. More than 20% of revenue was absorbed by debt financing costs while net profit shrank.
Per its latest filing, A$3.51 billion sat in hard-to-sell inventory such as land for future projects, and only A$14.5 million was immediately available as cash. As Sydney's market softened this year and construction costs climbed, Bathla said sales declined and prices fell. At the time of administration, about 2,000 dwellings were under construction, including a 339-apartment complex in Rouse Hill and The Peak Residences, a 312-apartment project in Pemulwuy.
The key issue for purchasers is that, under laws in every Australian state, off-the-plan deposits must be kept in a trust account until settlement. Key point for purchasers: in Australia, off-the-plan deposits must sit in a trust account up to the time of settlement. In theory, that protects your money if a developer fails.
But administrators have flagged exceptions. On Sept. 4, Teneo Managing Director Stephen Longley said some Bathla contracts allowed deposits to fund projects, and in those cases the money was not held in required trust accounts. He also said that certain contracts have reached settlement after Bathla entered administration despite the deposits not being kept in trust.
Teneo is still reconciling the position across projects.
A New South Wales government spokesperson said it would take "appropriate action in the event the mismanagement of deposit funds is identified."
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If the company ends up in liquidation, how deposits were handled will matter a lot. One person with knowledge of the process said that if deposits were not protected, the affected buyers could be treated as unsecured creditors, meaning they would be paid only after secured creditors like financial institutions or specialized funds, if any distributions occur.
There is no one-size-fits-all answer. Some projects may secure funding and continue, letting buyers eventually receive their homes. If a development stalls or is canceled, getting deposits back becomes the key question. Sydney-based law firm Kreisson's managing director, David Glinatsis, put it this way: "insolvency does not automatically mean buyers lose their deposits, but neither does it guarantee a full recovery." He added that outcomes are likely to "vary significantly from project to project."
There are potential avenues if things go wrong. Beneficiaries could seek to recover funds if deposits that should have stayed in trust were withdrawn or misused, said Jason Harris, a corporate law professor at The University of Sydney Law School. He cautioned, however, that "the company trustee is insolvent and any enforcement involves litigation which is expensive and time-consuming."
Insurance can be a last-resort safety net for some. In New South Wales, it is generally mandatory for builders and contractors to carry Home Building Compensation Fund cover for residential jobs exceeding A$20,000. The scheme can reimburse losses - including deposits - when a builder is insolvent or unable to finish, and it also responds to defects such as major water ingress or substandard finishes.
The limit is A$340,000 per dwelling, and the coverage does not apply to buildings taller than three stories. The State Insurance Regulatory Authority's register indicates Bathla holds hundreds of active insurance certificates statewide.
Contract terms also matter. Depending on the contract, certain purchasers may have termination rights where a restructure causes a material change - for example, bringing in a new builder - or where a project fails to meet the contractual "sunset" date. One practical trap to avoid: insolvency does not automatically end a contract, and simply stopping payments required under the agreement could see a buyer pursued to complete.
Bathla's troubles underline how off-the-plan risk jumps when corporate missteps meet a market correction. According to the corporate watchdog, for each of the past six years the construction sector has represented about a quarter of Australia's insolvencies. Bathla also tapped in excess of 40 private credit lenders, amplifying the strain as sales weakened and expenses increased.
For everyday buyers, the bottom line is that protections exist, but they are uneven. Trust accounts help, insurance may apply depending on the building, and contract levers can matter. The flip side is that delays, legal processes and funding gaps can burn time and cash. Knowing who is building your home, how it is financed and what guardrails are in place can be the difference between a stressful pause and a costly loss.
