Mega Capital Liquidation: $10m Losses & Links to Meth-Tainted Beer

Auckland-based property development firm Mega Capital Group has collapsed into liquidation following allegations its financing was linked to methamphetamine importation and supply, and the tragic case of a man who died after unknowingly consuming meth-tainted beer. The failure of the ambitious “Taimana Estate Development” in Drury, initially projected to be worth $95 million, highlights the risks of opaque financing and the far-reaching consequences of the illicit drug trade.

The development, planned for a six-hectare site on Jesmond Road purchased in November 2021 for $19.8 million, aimed to deliver 176 homes. However, by October 2025, the property was subject to freezing orders as alleged proceeds of crime. Police initiated the investigation following the death of 21-year-old Aiden Sagala in early 2023, who died after consuming beer contaminated with methamphetamine, branded “Honey Bear”.

The freezing orders, initially covering $36 million in real estate including the Drury land, two residential properties in Whitford and Totara Heights, and a commercial section in Bombay, were intended to prevent the alleged proceeds from being used to fund further drug imports. The investigation uncovered a massive operation, with police recovering over 700kg of methamphetamine estimated to be worth at least $80 million, concealed within the beer cans.

Mega Capital Group entered liquidation in December after the Auckland Council applied to recover overdue rates and resource consent fees. The first report from liquidators Keaton Pronk and Steve Farquhar of McDonald Vague revealed $8 million in creditor claims, a figure they acknowledged was incomplete. The Drury land, the company’s primary asset, was then valued at $18 million – a significant decrease from the original purchase price and the projected development value.

The liquidators’ report paints a bleak picture for creditors, stating they “may recover 0c in the dollar.” A caveat remains in place on the property relating to a $627,699 debt owed to Pearlfisher Capital, a firm that had agreed to provide a $10 million loan to Mega Capital in July 2022, but the deal was ultimately cancelled by Ajaypal Singh, Mega Capital’s sole director and shareholder, who claimed alternative financing had been secured.

Singh, who also operates under the name Ajay Bal, told the Herald that the project was initially derailed by a downturn in the property market, exacerbated by the police freezing order. He maintains he has been assisting liquidators with their inquiries and asserts he was unaware of the illicit activities connected to the financing. He claims to have been holding shares on trust for other investors.

“I had two investors in there. One investor, I don’t know what they were doing, how the money was coming in. I’m still not sure, because the criminal proceedings have not concluded yet,” Singh stated. He is also the vice-president of the Indian Global Business Chamber (IGBC) and runs the confectionery franchise Novelty Sweets.

The financial fallout has been severe for Singh personally. He has lost his primary residence in Alfriston, which was sold by mortgagee auction in late 2023 for $2.3 million, significantly less than the $3.6 million he paid for it five years prior. Singh estimates total losses related to Mega Capital to be “in the vicinity of about $10 million.”

The collapse of the Taimana Estate Development underscores the vulnerability of the property sector to criminal activity and the challenges of due diligence in complex financial transactions. While the police have successfully restrained assets linked to the alleged drug operation, the significant losses incurred by creditors and the diminished value of the Drury land suggest a limited recovery for those affected. The case serves as a stark reminder of the potential for illicit funds to infiltrate legitimate businesses and the devastating consequences for both investors and the wider community.

The investigation remains ongoing, and the ultimate fate of the Drury property remains uncertain. The liquidation process will likely determine the extent to which creditors can recover their losses, but the prospect of a full recovery appears increasingly unlikely given the substantial financial damage already sustained.