The controversial businessman applied for bail during an appearance at Waverley Local Court on Tuesday but magistrate Jennifer Giles adjourned her decision until Wednesday.
Mehajer had been charged that morning over the crash that occurred in October last year.
The 31-year-old was then on his way to face court over the alleged assault of a taxi driver when his Mercedes AMG collided with a Mitsubishi Outlander at an intersection in Lidcombe.
He was freed by firefighters and taken to hospital, while his passenger and the occupants of the other vehicle - two women aged 31 and 32 - were not injured.
A police strike force investigated the crash and on Tuesday morning Mehajer was arrested at a home in Vaucluse, while a 28-year-old man was also arrested at a Lidcombe property.
The 28-year-old is Mehajer's friend and business associate Ahmed Jaghbirt.
Mehajer and Jaghbir were taken to Waverley and Bankstown Police Stations respectively.
Mehajer was charged with perverting the course of justice and conspiracy to cheat and defraud, while Jaghbir is expected to face the same charges.
Detective Superintendent Philip Rogerson said there was an alleged conspiracy between the parties.
"I can say that the pervert the course of justice (charge) was in relation to the court matter on that particular day," he told reporters outside Auburn Police Station on Tuesday.
"The cheat and defraud (charge) is in relation to the insurance culminating out of the car accident."
Two other people - a 30-year-old man and 31-year-old woman - have been charged with conspiracy to cheat and defraud, while a 28-year-old Lidcombe man and a 30-year-old Lidcombe woman have been arrested and are expected to face the same charge.
In October, police confirmed they were investigating allegations companies linked to Mehajer were involved in car insurance fraud.
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