One of Salim Mehajer's political allies has denied he supported the former Auburn deputy mayor's bid to retain a multi-million-dollar council contract because of a "personal relationship".

Former Auburn mayor Ronney Oueik made the comments as he gave evidence at an inquiry into allegations of misconduct at the now-defunct Auburn council.

In 2011, the council resolved to accept a tender from Mr Mehajer's company, Sydney Constructions and Developments, to purchase the council car park on John Street for $6.5 million.

Over the next four years, Mr Mehajer repeatedly sought extensions and variations on the tender contract, which were all approved by council.

He also wrote to council requesting the 10 per cent deposit, which he had already paid, be changed to 5 per cent.

Despite legal advice warning against the move, council resolved to grant Mr Mehajer his request in 2013.

He was refunded $325,000.

In 2015, Mr Mehajer once again tried to change the contract, citing a new company structure.

The council was advised by its lawyers to terminate the contract and go back to tender, but the council instead approved a new contract, which was renegotiated to $8.5 million.

That was despite a valuation commissioned by the council finding the land was worth $13 million.

The counsel assisting, Paul Bolster, questioned Mr Oueik on whether he voted in support of Mr Mehajer because the pair had a personal relationship.

Mr Oueik denied the claim.

The former mayor told the public inquiry that he supported Mr Mehajer's bid because it was the best thing for the locals.

"As long as at the end of the day we get a good result for the community," he said.

Mr Oueik said he was under pressure from locals to support a supermarket, which was part of Mr Mehajer's proposal.

"Politics is a very hard game," he said.

"A really, really hard game... we go through headaches, and we face election and people judge us on election day.

"The only reason council said we will sell the car park ... we need to have a supermarket for the community because that's what the community want, so we agreed to do that."

Mr Oueik also dismissed the $13 million valuation, saying it was a "pie in the sky" figure.

"Nobody would buy it ... no one would go nowhere near it," he said.

Earlier, the former mayor denied striking rezoning deals to help political ally, Hicham Zraika, and bribing planning staff with $2,000 worth of free cupboards.