Luxury villas built without approval spark legal clash between developer and Hepburn Council

Clifftop at Hepburn, a luxury tourist site featuring villas named Zulu, Sahara and Serengeti, has been alleged to have erected additional accommodation units—including a converted shipping container and a former train carriage—without the required planning approvals in a bushfire-risk zone. Co-owner David Penman, who earlier filed private prosecutions against four councillors, the mayor and the former council CEO, now challenges the Hepburn Shire Council’s denial of a secondary-consent application in both the Supreme Court and before VCAT.

Council inspections identified unapproved dwellings, signage, lighting and vegetation removal, prompting the council to advise a full planning permit. Penman maintains the structures are lawful, citing caravan-park registration and independent fire-safety assessments, while neighbours and the Country Fire Authority argue further scrutiny is needed. The protracted litigation has cost the council tens of thousands of dollars and forced the lay-off of three staff members. Upcoming legislative changes may alter how councillors are required to step down during private prosecutions.