In a shocking development in the real estate sector of Metro Vancouver, Burnaby-based Thind Properties is facing serious accusations from KingSett Mortgage Corp. The lender alleges that the developer has "misappropriated" millions of dollars, including tax funds that should have been directed to the Canada Revenue Agency (CRA).

KingSett has filed two petitions in the B.C. Supreme Court, seeking over $300 million in owed payments connected to several major condominium developments located in Surrey, Richmond, and Burnaby, which together comprise nearly 1,800 residences along with office and retail spaces.

The first petition successfully resulted in the appointment of a receiver for a Surrey condo project, after KingSett claimed that Thind failed to fulfill its financial obligations. In the second petition, KingSett is pushing for a receiver to be installed to monitor Thind’s remaining condo projects in Richmond and Burnaby, asserting this step is crucial to prevent any potential misappropriation of funds going forward.

According to court documents, KingSett provided mortgage loans to Thind Properties for its mixed-use developments but was left in the lurch when the developer missed repayments in September and October. The lender claims it is owed a whopping $146 million just for the Burnaby project and an additional $74.9 million for the Richmond property. Adding to this staggering amount is the $85 million associated with the Surrey project now under receivership, bringing the total debt owed by Thind to over $305 million, accumulating interest at the rate of nearly $99,431 daily.

In a particularly alarming accusation, KingSett claims that Thind retained funds amounting to $17.7 million, including $10.2 million which should have been paid toward its existing debt. Furthermore, the lender alleges that Thind collected $7.5 million in Goods and Services Tax (GST) from condo sales but failed to remit these funds to the CRA, allegedly diverting the money for undisclosed internal obligations.

The situation has not only raised alarms for KingSett but has also created a ripple effect throughout the local housing market. Several stakeholders, including potential home buyers, contractors, and small businesses tied to Thind Properties, are now left uncertain about their investments. Thind’s Surrey condo project, despite having 90% of its units pre-sold, remains stalled in construction due to the financial turmoil.

The ramifications of these allegations can be significant, potentially affecting Thind Properties' reputation and future projects. As the case progresses through the court, industry watchers will be keenly observing the impact on Metro Vancouver's real estate landscape.

Despite repeated attempts to reach out, Thind Properties, including CEO Daljit Thind, has yet to provide any comment or respond to inquiries regarding these allegations. KingSett Mortgage Corp., part of KingSett Capital—a prominent real estate investment firm managing around $18 billion in assets—also declined to elaborate further on the case.

Stay tuned, as this case continues to unfold, potentially uncovering deeper issues within the real estate development sector in Metro Vancouver!