Bathla Group halts all construction as emergency funding runs dry across 13 sites

HouGarden Australia, 24 September — Stephen Longley, senior managing director at administrator Teneo — not a Bathla executive — said in a statement that the staff suspensions were a direct consequence of the funding collapse. "The initial funding has now been exhausted, with discussions with lenders for further cash now at an end," he said.

Earlier this month, Longley had announced that short-term funding agreements had been reached with five lenders, giving the stricken group a further fortnight of operating capacity. That two-week window has now closed without a replacement arrangement being secured.

Construction workers across all 13 Bathla sites have been stood down — meaning they have been suspended from work but have not been formally dismissed — and all building operations have ceased. The exact number of affected staff has not yet been confirmed.

Longley said Teneo's attention has shifted to working with lenders on an orderly sale of Bathla Group's subdivision and landbank holdings. A core group of Bathla employees has been kept on to assist with asset management and realisation during that process.

The administrators said they would continue to update customers, employees, creditors, subcontractors and other stakeholders as the administration progresses.

The funding collapse follows a warning Longley issued in late August, when he disclosed that some Bathla staff had not been paid for two months. "So unless that situation can be resolved, we don't have any other option but to close the business," he said at the time.

The administration period itself has been extended to run until 13 September 2027, a timeline that reflects the scale of Bathla Group's construction portfolio and the varying stages of completion across its projects. That date is the deadline for the administration procedure, not a target completion date for any of the group's projects.

If Bathla Group were to move from voluntary administration into liquidation — a distinct legal outcome that has not yet occurred — almost 3,000 homes and apartments would be left in an uncertain state. Voluntary administration and liquidation are separate procedures under Australian law; the latter has not been determined.

Teneo was appointed administrator to the Bathla Group entities in late August. The appointment covers three separate legal entities: Bathla Group, the broader corporate name; Universal Property Group, the parent company; and Raj & Jai Construction Pty Ltd, the group's internal building and construction arm.

On 26 August, Bathla Group managing director Bhart Bhushan confirmed the voluntary administration, saying the decision had been made "in the interest of all stakeholders" in the face of what he described as a "perfect storm" of circumstances. Bhushan cited softening sales, the impact of changes introduced in the federal government's May budget, falling buyer confidence in key markets, and rising construction costs as the combined pressures behind the group's financial difficulties.