Modco mum in trouble over building in Rivervale faces potential penalties for breaching the law

The mother of Cynthia Lu — of Modco Residential infamy — is under fire for building on her Rivervale property without a permit and without seeking approval. Belmont Council has given Bin Dao Lu until December 17 to get a retrospective building permit and also retrospective development approval, if required. The penalties for breaching the two regulations are $50,000 each. Council photos show the exterior of the granny flat is largely complete, with only the internal fit-out yet to be finished. Council insiders say the property was inspected after a neighbourhood tip-off from a local who feared the structure does not comply with regulations. A Belmont council spokesperson explained granny flats can legally be built without going through an official development approval stage, if it is compliant with regulations. But by law, the owner must first seek a building permit, at which point the council assesses whether plans are compliant or must go through an official development approval application. “In this case, we did not receive a building permit application,” said the spokesperson. The council letter was sent to Ms Lu, the property co-owner Xia Dong Chen and to Nextruss Steel, which is the Modco-linked steel company founded by Ms Lu’s son-in-law Yusuf Khan. Mr Khan’s mother Annamarie Khan later took over as the Nextruss director. Mr Khan is married to Ms Lu’s daughter, Cynthia Lu, who co-founded Modco Residential with her husband, and had the controlling share. The building company collapsed with $4.4 million in debts. A lawyer for Mr Khan, Louis Lee, said neither Mr Khan nor Nextruss Steel were involved in the granny flat. Mr Khan and Ms Lu now face a bid by regulators who want to bring it before the State Administrative Tribunal to scrutinise its operations. The Building Services Board is planning to haul Modco before the State Administrative Tribunal more than a year after it collapsed. The Federal Court is required to approve the plan because the business is now in the hands of liquidators from Hall Chadwick. It has been an eventful year for Mr Khan since. His Perth City Enterprises, which ran the Library Nightclub, was also sent to liquidation amid a debt to the Australian Taxation Office.