An unpaid land tax bill for the sum of $151,000 has led to the closure of development company 70 Nicholson St Pty Ltd, backed by former nightclub owner Nick Meletsis and associate of convicted drug dealer Horty Mokbel, Tom Karas.
The duo set out on a 51-apartment development to transform a Victorian Terrace; however the project stalled two years ago, after facing challenges due to heritage concerns and its close proximity to the Royal Exhibition Building.
Mr Meletsis, who up until mid-2012 was the company’s director and secretary, would not go into details, saying “I don’t have anything to do with the company or the development. I don’t have anything else to say.”
The Supreme Court has been petitioned by the State Revenue Office to recover the $151,436 from the company, owed since late 2011.
This is not the first time the business associates have been wanted by the tax office.
In 2011, following his resignation as secretary and director of the company, Mr Karas received an income tax bill of $44 million. Mr Karas and wife Irene, Mr Meletsis’ sister, have had the Purana Taskforce use proceeds-of-crime laws against them to seize assets.
Mr Meletsis refused to comment on the motivation behind the company’s decision to sell the Victorian Terrace in late 2011 for $3 million.
Currently, Mr Meletsis is also fighting out a drawn out battle in the Supreme Court with former business partner, restaurateur Lou Jovanovski over a $540,000 debt.
