Former Governor General Sir Jerry Mataparae with Davinder Singh Rahal, right, as he receives the Queen's Service Medal for services to the Indian community in 2012. Photo / Supplied
Former Governor General Sir Jerry Mataparae with Davinder Singh Rahal, right, as he receives the Queen's Service Medal for services to the Indian community in 2012. Photo / Supplied
A respected businessman could be stripped of his Justice of the Peace warrant after being ordered to pay financial damages for deceptive conduct linked to the sale of a rot-infested house.
Davinder Singh Rahal is not only a JP but was awarded the Queen's Service Medal for services to theIndian community in 2012.
However, Associate Justice Minister Aupito William Sio is now considering disciplinary action against Rahal after the Weekend Herald revealed that the South Auckland man had been found jointly liable for nearly $900,000 in damages for his role in what a judge described as "quite literally a cover-up".
"I have instructed officials to write to Mr Rahal offering him the opportunity to make any submissions he may wish to provide, before I make a decision on whether, or what type of, disciplinary action may be taken," Sio said.
The Herald understands the Honours Unit is also assessing whether it is suitable for Rahal to hold a Queen's Service Medal in light of the findings. But the Prime Minister's Office has refused to provide a statement on the matter, despite repeated requests over nearly six weeks.
Ameet Bhargav and his wife Renu outside their leaky house in Goodwood Heights, Manukau shortly after buying the property in 2020. Photos / Supplied
First home buyers Ameet Bhargav, 35, and his wife Renu, 34, say they have endured three years of mental anguish and stress in their fight for justice, racking up tens of thousands of dollars in legal costs.
The couple purchased a three-bedroom Goodwood Heights property in March 2020 for $665,000 from First Trust Limited (FTL), which is owned by Rahal and his wife Jivan.
They commissioned a pre-purchase inspection report from Metsons (NZ) Limited. The company's director Vinay Mehta carried out the inspection and provided a written report saying the property was in "generally good condition" with "no moisture detected any place in the house".
After the couple took possession, they became aware of moisture problems and commissioned a second inspection report from another company which identified significant weather-tightness problems and multiple water entry points.
Another expert found building work carried out by Rahal's company was non-compliant with the building code and unconsented.
The estimated cost of repairs was $750,000 or up to $1.05m to demolish and rebuild.
The couple engaged lawyers and tracked down the previous owner who sold the property to Rahal's company. They confirmed it had a history of moisture problems and had been advertised "with explicit disclosure of leaking, damp and mould issues".
Building inspector Vinay Mehta was found jointly liable to pay $900,000 in damages for deceptive conduct. Photo / Supplied
It also emerged that prior to purchasing the house, Rahal's company had engaged Metsons to undertake a building inspection - the same firm that later assured the couple the house was dry and sound.
The couple's lawyers filed civil proceedings last year claiming breach of contractual warranty against FTL, and misleading and deceptive conduct against Rahal and Mehta.
A reserved judgment by Justice Hinton found the couple had been deliberately deceived into purchasing a property riddled with "severe decay and rot".
Hinton found Rahal's company presented the house as newly renovated "as opposed to a leaky home in need of extensive repair work", and covered up evidence of water damage "to mitigate and conceal the effect of the external leaks".
"It was quite literally a 'cover-up'."
The couple paid $665,000 for this Goodwood Heights, Manukau home in March 2020. It turned out to be infested with rot. Photo / NZME
The couple was awarded damages of $861,113 plus costs and disbursements of $33,000.
Rahal now has 20 working days to provide a response on whether he should face disciplinary action as a JP.
A Justice Ministry spokesman said that once that response was received, a recommendation would be put to the minister outlining the available options.
"Those could range from taking no further action; instructing that an apology be issued; the issuing of a written rebuke; suspension of his Justice of the Peace warrant or removal of the warrant.
"If a decision to suspend or remove the warrant is taken, the minister will write to the Governor-General recommending that occur."
Rahal could not be reached for comment, but has previously denied acting deceptively.
He told the Herald he was aware the house had moisture issues at the time of purchase but did not know it leaked.
