Salim Mehajer had not shown cause as to why his detention was unjustified, the magistrate Jennifer Giles said. Credit:AAP Furthermore, she rejected the claim by Mr Hughes that the case against Mr Mehajer was circumstantial and weak, finding instead "the strands of the prosecution case to be quite damning". In an ironic twist, Mr Mehajer's current predicament stems from what police alleged was a ruse by the 31-year-old to avoid a court appearance and make a claim on the car's insurance policy. Mr Mehajer, 31, was driving to court in his Mercedes AMG on October 16 when his car was involved in a crash with a Mitsubishi Outlander on Delhi Street in Lidcombe at about 8.40am. He was taken to hospital, while his passenger and the occupants of the other vehicle – two women, aged 31 and 32 – were uninjured.

The other driver admitted fault after the crash, the court heard on Wednesday. Calling it a "mad idea", Ms Giles poured cold water on Mr Mehajer's claim that he had been the victim of an extortion scheme by the occupants of the other car involved in the crash. "What is alleged here [against Mr Mehajer], and it is quite compelling, strikes at the core of the criminal justice system," Ms Giles said. Police alleged the former deputy mayor of Auburn council was part of a joint criminal enterprise with five other people to set up the crash, with the group conspiring before and after the incident, and providing fraudulent versions of events to investigators and insurance companies. Mr Mehajer is charged with perverting the course of justice and conspiring to cheat or defraud, which carry maximum penalties of 14 years' jail and 10 years' jail respectively.

One of the alleged co-conspirators, Ahmed Jaghbir, has been charged with the same offences as Mr Mehajer. It was claimed in court that Mr Jaghbir said he was instructed to arrange the October collision to buy Mr Mehajer more time before his scheduled court hearing that day. Ms Giles said it was alleged family members of the other driver were heard later in telephone intercepts to be claiming $10,000 in exchange for helping Mr Mehajer. The court also heard that Mr Mehajer took out an insurance policy on his Mercedes for $156,000 nine days before the crash, and his family lodged a claim on that insurance on the day of the crash. However, police alleged the car was only worth $95,220. Speaking outside court, Mr Hughes said he anticipated he would receive instructions from Mr Mehajer to make a further bail application in the Supreme Court.

"Let's wait and see what the evidence shows," Mr Hughes said. "There is no admission made by Mr Mehajer. There is no attribution to Mr Mehajer of any direct involvement by way of surveillance device, telephone intercept or any other product that's been provided to us at this stage." Jaghbir is also defending an unrelated murder charge following the March 2017 shooting death of Sydney underworld figure Kemel Barakat. During a bail application on Wednesday, prosecutor Sergeant Michael Cleaver told Bankstown Local Court the crown case was strong and was backed up by telephone intercepts as well as audio and video surveillance. He also cited the risk that Jaghbir could flee or interfere with prosecution witnesses, who include his co-accused, and his "willingness to interfere with the natural course of justice".

"He has shown an intention, on our case, to deceive the court," Sgt Cleaver said. Jaghbir's lawyer David Price argued his client was of prior good character and had a two-month history of complying with strict bail conditions. He has also offered a $20,000 self-forfeiture should any existing or additional conditions, which include twice-daily reporting to police and a curfew, be broken. "Any breach of any conditions including contacting witnesses ... (would mean) his family could very well lose their house," Mr Price said. Jaghbir lives in Lidcombe with his parents and is caring for his mother and wife, who is three-months pregnant, the court heard.

"But for the background noise, it's a matter where a person in his circumstances would normally receive bail," Mr Price said. Jaghbir faces a maximum of 14 years' jail on the perverting the course of justice charge. Magistrate Clare Farnan said it wasn't possible to conclude the strength of the prosecution case. "I consider it to be of some significance that the applicant has no prior convictions and has been complying with the bail conditions imposed in November," she said. "In my view the concerns raised by the prosecution can be addressed by the imposition of strict conditions."

Jaghbir was ordered to not use more than one mobile phone number in addition to his existing bail conditions. Loading Ms Giles adjourned both matters to March 28. With Georgina Mitchell and AAP