Salim Mehajer has been charged with breaching the state's electoral funding disclosure laws, in the latest legal headache for the colourful property developer and former councillor.

The former deputy mayor of the now-defunct Auburn Council is accused of failing to lodge an annual disclosure of his political donations and expenses by the September deadline last year.

He was charged under the NSW Election Funding, Expenditure and Disclosures Act and the first steps were taken in his prosecution in the Downing Centre Local Court on Wednesday.

If convicted, Mr Mehajer faces a maximum $22,000 fine.

The Local Court heard on Wednesday morning that Mr Mehajer's solicitor Mahmoud Abbas had only been "instructed in this matter as of 15 minutes ago".

The parties will next appear in court on August 8.

The 31-year-old is keeping a number of the city's lawyers busy.

He is also at the centre of a electoral fraud trial and has pleaded not guilty to more than 100 offences under Commonwealth laws.

The charges relate to the September 2012 Auburn Council election which catapulted Mr Mehajer into public office.

Prosecutors allege he "engaged in acts of electoral fraud designed to enhance his chances of winning the election", including submitting false online enrolment forms for voters.

Mr Mehajer's sister Fatima was charged with electoral fraud offences alongside her now-famous brother.

On the eve of the siblings' criminal trial in June, Ms Mehajer struck a deal with Commonwealth prosecutors to plead guilty to 77 counts of giving false or misleading information to the Australian Electoral Commission.

She will not be sentenced until after the conclusion of her brother's Local Court trial.

Evidence has concluded in Mr Mehajer's trial but the parties have yet to deliver their closing addresses to Magistrate Beverley Schurr.

As his criminal trials work their way through the courts, Mr Mehajer is facing a growing number of disputes over his companies' financial troubles.

On June 30, he lost a bid to oust administrators from two of his companies, Sydney Project Group and S.E.T Services.

The court has heard the companies owe almost $100 million to creditors and have just $32,000 in the bank.

In his judgment confirming that the administrators were validly appointed, Justice Stephen Robb said it was "highly likely" the companies were insolvent.

However, he noted there was "evidence that the companies have been engaged in a very substantial property development that may be relatively near completion".

Mr Mehajer has lodged an appeal against that decision but the administrators' powers have been reinstated in the meantime.

The first creditors meeting for the companies was held on Monday.