The Mount Barker District Council says it was never told that Coast to Coast homes was building a subdivision.
The now-failed company faces a $10,000 fine if they are found to have breached the Development Act fot not notifying the Council of its plans and for not providing proof of insurance before building 10 townhouses on the corner of Albert Place and Hack St.
The company was part way through the construction when it went into liquidation last month, which left 98 customers in the lurch and resulted in a $3.7 million debt.
A meeting of creditors and homeowners will be held on Tuesday 18 June.
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