Former politician Eddie Obeid wanted to disguise his family’s ownership of a rural property, claiming it was “to protect their privacy,” but the land's former owner said it was to hide their interest in coal, a Sydney court has heard.

Obeid, 76, his son Moses, 50, along with former NSW mining minister Ian Macdonald, 70, have pleaded not guilty over their involvement in an allegedly rigged government tender in 2008 and 2009 for a coal exploration licence which covered the Obeid property in the Bylong Valley, near Mudgee.

John Cherry, a former key adviser to Kerry Packer, sold his land to the Obeid family in late 2007. Credit:Kate Geraghty

John Cherry, who was a key adviser to the late media mogul Kerry Packer, told the NSW Supreme Court that he had “no idea that there was coal” under his land when he sold his rural property Cherrydale Park to the Obeid family in late 2007.

Mr Cherry said the entire Obeid family had come to inspect the property with the then politician referring to his five sons collectively as the "’Boyz’ with a ‘z’".