A tribunal has suspended Auburn Deputy Mayor Salim Mehajer from civic office for four months for failing to disclose all of his financial interests.

Key points: Tribunal suspends Cr Mehajer over "extremely serious" breaches of Local Government Act

Tribunal suspends Cr Mehajer over "extremely serious" breaches of Local Government Act Breaches related to pecuniary interests in Auburn property

Breaches related to pecuniary interests in Auburn property Cr Mehajer plans to appeal

Cr Mehajer plans to appeal Full council could be suspended within days for separate public inquiry

The Office of Local Government has been investigating Councillor Mehajer over a commercial building his company owns on Mary Street in Auburn.

It has been looking at whether the 29-year-old breached pecuniary interest laws by failing to declare the interest when he voted to increase floor space ratios on the building, as well as its height.

Those changes added up to $1 million in value to the property.

The NSW Civil and Administrative Tribunal found Cr Mehajer breached pecuniary interest laws on three occasions — once in 2012 and twice in 2013.

"[Cr] Mehajer failed to disclose a direct and substantial pecuniary interest in a matter before the Council at meetings which he attended and where he voted in support of his own interests," tribunal member David Patten said.

"Moreover, [Cr] Mehajer's initial response to the allegations made against him, rather than evidence contrition, seemed to me to reveal a serious lack of respect for or appreciation of the high degree of probity which the law required of him.

"The breaches were extremely serious as the pecuniary interest was high.

"In Mr Mehajer's favour I have regard however ... to the fact that he did disclose other properties potentially affected by the business before council."

In a statement, NSW Local Government Minister Paul Toole said he expected "all councillors to act with the highest integrity in their civic duties and in the interest of ratepayers".

"The report made adverse findings against Clr Mehajer in that he had, on three occasions, failed to disclose a pecuniary interest contrary to his obligations under the Local Government Act," he said.

Mehajer to appeal against suspension

Cr Mehajer told the ABC he would fight the decision.

"Like always, I will have it no doubt overturned," he said in a text message.

Cr Mehajer first made headlines in August when he closed streets for his lavish wedding. ( Facebook )

Mr Patten, a retired judge, said he accepted that Cr Mehajer did not intentionally breach the act, but that the suspension was necessary.



"There should, however, in my view be a significant sanction to make clear to [Cr] Mehajer and other persons who offer themselves for, or are elected to, public office in local government, that they have statutory obligations which include obligations to act honestly and transparently in the performance of their responsibilities," he said.

"These obligations are not to be undertaken casually or lightly.

"Ignorance is no excuse and each councillor, upon election is required to acquaint herself or himself with the obligations, comply with them punctiliously and if necessary take advice upon them."

Entire Auburn Council under investigation

Last week, a public inquiry was announced into the operations of Auburn Council, which made headlines over the past six months due to the controversial antics of Cr Mehajer.

The inquiry is examining allegations a number of Auburn councillors misused their positions to obtain significant planning outcomes for themselves, associated companies, friends, relatives or other councillors.

Local Government Minister Paul Toole last week said he would suspend councillors for the duration of the inquiry unless the council could put forward a case against the move.

Following the suspension of Cr Mehajer on Friday, Mr Toole said the inquiry would not be affected.

"Nor is the 14-day period the Council has to present why it should not suspended," he said.

The council is also one of several NSW councils facing amalgamation.

The Government has previously joined other Auburn councillors in calling for the resignation of Cr Mehajer, who first made headlines last year after he closed a street for his lavish wedding.

A number of his colleagues accused the property developer of having conflicts of interest and he has also been charged with electoral fraud and intimidation, but Cr Mehajer has refused to leave the council.