Western Australian Labor MP Jagadish Krishnan is facing a demand for $1.93 million from Avid Global Holdings over the failed sale of his Spectrum Health Group GP network.
A letter sent by lawyers for the company on June 15 alleged that Mr Krishnan had promised to cover Avid’s legal and professional costs connected with the proposed transaction, which collapsed last year.
The demand, issued by Clayton Utz, required payment within five days. Avid Global is the parent company of AvidSys, the Indian-Australian-owned mining and construction group headquartered in Perth.
“In or about late October 2025, you represented to our client that you would pay all of our client’s legal and other professional costs incurred by our client in connection with the Transaction,” the letter said.
It alleged that Mr Krishnan repeated the promise in several telephone conversations and that Avid had suffered detriment because the commitment had not been fulfilled.
Ansh Gautam, AvidSys’s founding director and chairman, confirmed the letter had been sent but declined to comment further.
Mr Krishnan said he had made all financial declarations required by Parliament and described the dispute as a private matter he was attempting to resolve.
“My legal representatives have sought more information from Avid Global Holdings regarding their initial correspondence sent in June, but have not received a response since June,” he said.
Financial pressure on Riverton MP
The claim adds to mounting financial pressure on the Riverton MP, who is already being sued in New Jersey for $1.2 million over an allegedly unpaid loan secured in 2024.
Landgate documents show that Mr Krishnan also used his family home in Mosman Park, about 18 kilometres from his electorate, as security for a $330,000 loan carrying interest of 3.5 per cent a month.
Mr Krishnan, who is also known as Dr Jags, resigned from his directorships before entering politics. He said last year that he had “been out of business for almost four years”.
Before the proposed Spectrum Health sale fell through, AvidSys issued a statement saying Mr Krishnan would remain as an adviser and help support the business after its acquisition.
Spectrum Health is understood to be in the process of being sold to rival GP network Family Doctor, in a deal believed to be worth $47.5 million. Mr Krishnan said the transaction was due to settle at the end of the month but declined to say how much he stood to receive, citing commercial confidence.
The MP’s financial affairs have also drawn scrutiny after it emerged he had spent almost all of his parliamentary salary on electorate expenses.
Premier Roger Cook said he had spoken to Mr Krishnan, who maintained that the disputes were private commercial legal matters he would continue to defend.
Mr Cook said he had reminded the MP of the standards expected of parliamentarians regarding the disclosure of gifts. An American businessman suing Mr Krishnan over the alleged loan has claimed he paid for accommodation, a limousine journey and an evening cruise on the Hudson River.
Deputy Premier Rita Saffioti backed Mr Krishnan, saying he had been “an excellent member for Riverton, working for his community, delivering for his community” and would continue to be a good local member.
