Australian Petrol Company Directors Settle Contamination Claims for $2 Million

A company that owned a network of petrol stations across Australia has agreed to pay $2 million to settle claims of environmental contamination, a fraction of the debts owed to its creditors. Zoya Investments, which leased stations in multiple states, entered liquidation in April 2024.

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The land is still unsaleable as of today and maybe for the next two years.

The liquidator had accused the company's former directors, Rizwan Rana and Satwinder Singh, of using company funds for personal gain and selling off properties to family members and associated companies shortly before the firm collapsed. These allegations were part of Federal Court proceedings that were ultimately dismissed following the settlement.

The directors have denied any wrongdoing, stating that assets were sold to clear company debts and that temporary loans for homes were repaid. However, the settlement means that Seaforth Securities, which was awarded $9.3 million in damages after a service station leaked onto its property, will receive only about $300,000 after fees. This amount represents roughly 3 cents for every dollar owed.

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The way I feel about the whole scenario of this is that we've been hard done by.

Seaforth director Bruce Johnson expressed his deep disappointment, stating that his land remains unsaleable and that he feels "hard done by" and "completely let down by the whole system." The Australian Tax Office was also a major creditor, owed more than $4 million.

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I feel completely let down by the whole system.