'You are in on it': ICAC probes alleged $5m shakedown

A Labor councillor and lawyer working for a fugitive property developer denies taking part in a trumped-up $5 million shakedown the flamboyant businessman allegedly fabricated.

Sharangan Maheswaran, a former lawyer and executive for collapsed Sydney company Toplace, is under questioning at the Independent Commission Against Corruption over dealings with Jean Nassif, as well as former Strathfield Council colleagues.

Nassif is accused of paying NSW Liberal Party operatives for political outcomes benefiting his interests.

These included harming the reputation of former minister David Elliott and tarnishing former building commissioner David Chandler by planting negative media stories based on unproven assertions.

Mr Maheswaran was questioned on Thursday by counsel assisting Peggy Dwyer on messages and recordings claiming Nassif was being shaken down for $5 million by construction contractor Navid Ardestani.

Dr Dwyer quizzed Mr Maheswaran regarding the veracity of draft documents he typed up about the alleged extortion attempt where Nassif accused Mr Ardestani of "controlling the government".

"You are trying to construct a false narrative about an extortion or shakedown. Isn't that the situation?" she asked.

"I don't note every single thing that occurs. I don't have the time to transcribe an entire thing ... this is what lawyers do," he replied.

Mr Maheswaran relayed these shakedown claims in April 2021 to Mr Chandler, who Nassif viewed as a heavy-handed regulator.

After reading out several transcripts of meeting notes between Nassif and Mr Ardestani, Dr Dwyer directly accused the Toplace lawyer of manufacturing an exaggerated extortion claim by falsifying documents.

"Either you've been lied to, to suggest there was a threat on that day from Navid, or you are in on it," Dr Dwyer said.

"You have acted dishonestly and improperly in creating those two documents, suggesting there was some sort of impropriety on behalf of Navid," she added.

Mr Ardestani told the commission in a private hearing in 2024 he never tried to extort Nassif but was rather advising him on urgently fixing sizeable defects in his buildings.

"The only corrupt person here (and) I'm not an angel... but the only person, corrupt person here, is Jean Nassif," he said.