Salim Mehajer's bankruptcy trustees may investigate $20million that he and his father allegedly sent to Lebanon two years ago.

The former deputy mayor, who is behind bars accused of staging a car accident to get out of facing court for bashing a taxi driver, allegedly sent the funds after making millions developing and selling apartments in Sydney.

Police are said to have prepared a report on the alleged transfer to hand to the Australian Tax Office.

Sydney businessman Salim Mehajer has been declared bankrupt by a Federal Circuit Court judge after one of his companies failed to pay a debt of over $200,000 to its creditors

The company which built a staircase (pictured) at his lavish Lidcombe home supported the bankruptcy application

There is no suggestion that the alleged transfer was illegal, but it attracted police attention due to the large sums involved, reported The Australian.

Daily Mail Australia has contacted New South Wales Police for comment.

It comes after it was revealed that Mehajer has been accused of selling anxiety and pain killer drugs.

In a raid on his Lidcombe property in November last year police allegedly found 50 alprazolam tablets, commonly traded under the name Xanax, and 174 tablets of Enzone and Targin.

Police delayed releasing details of the alleged drug haul because they were waiting for results to confirm what the drugs were.

Mehajer was declared bankrupt by a Federal Circuit Court judge on Tuesday after one of his companies failed to pay a debt of over $200,000.

The petitioning creditor for the bankruptcy order was the liquidator of Mehajer's property development business, SM Project Developments.

Other creditors, including the Australian Taxation Office and the company which built a staircase at his lavish Lidcombe home, supported the application.

Judge Justin Smith on Tuesday rejected his lawyer's argument that the bankruptcy notice was invalid.

Mehajer's multi-million-dollar estate, including his Lidcombe home (pictured) will now be managed by a trustee who will take control of his property and financial affairs

Mehajer made headlines after causing chaos and shutting down streets during his lavish wedding to now former wife Aysha

The order means Mehajer's multi-million-dollar estate will be managed by a trustee who will take control of his property and financial affairs - and deal with his creditors.

Legal costs of the bankruptcy application totally $20,524 will also come out of his estate.

The bankruptcy order comes as the 31-year-old faces a string of criminal charges.

His dream of becoming prime minister is well and truly shattered, as he continues to fight legal battles including electoral fraud claims and allegations he breached an AVO taken out by his former wife.

Mehajer was convicted of assault occasioning actual bodily harm after he threw an EPTPOS machine at the driver's face outside Sydney's Star casino in April last year.

He is accused of staging a car crash to avoid court over the matter - and defrauding an insurance company after he insured his Mercedes for over $150,000.

During a bail hearing last month, Mehajer said his situation was 'an absolute mess', with frozen bank accounts affecting his business, family, employees and investors.

Being incarcerated and having only one phone call a day was making it 'ever so difficult' to turn his fortunes around, Mehajer said.

'I am here between four walls and letting everything collapse... this is going to be a catastrophe,' he predicted.

Mehajer could face a lengthy jail term if convicted of perverting the course of justice and conspiring to cheat and defraud over the alleged staged crash.

Perverting the course of justice attracts a maximum sentence of 14 years in prison.

The 31-year-old is currently behind bars awaiting trial after allegedly faking a car crash to avoid a court appearance over the assault of a taxi driver

Mehajer is accused of staging the car crash and defrauding an insurance company, days after he'd insured his Mercedes for more than $150,000

The businessman was also last month found guilty of assaulting Channel Seven journalist Laura Banks.

The incident took place outside Day Street police station on April 2 last year, where Mehajer had been taken early that morning following the taxi driver incident.

Ms Banks had been standing in the doorway of a Porsche trying to quiz Mehajer when he slammed the car door against her.

He was found guilty of assault occasioning bodily over the incident, which left her with hand and back injuries.

The bankruptcy order comes as the 31-year-old faces a string of criminal charges

Mehajer will remain behind bars until his matter over the alleged staged car crash is heard on March 28.

He first captured the public's attention in 2015 when his wedding shut down streets in Sydney's west.

He hired four helicopters that landed in a local park, while his fiancee Aysha travelled with a $50 million motorcade of 45 motorbikes and 35 luxury cars.

In a later television interview, he stood at a lectern and said he would like to be prime minister.

'I'd like to make my way up to the very top spot,' he said. 'That would [be] my dream come true.'

Mehajer was last month found guilty of assault occasioning bodily harm against TV reporter Laura Banks (left) outside a Sydney police station last year