AI Generated Summary
- Two Sikh gurdwaras in Ontario have been named in a civil lawsuit over more than $13 million in allegedly unpaid loans, in a dispute that also involves former Canadian Liberal MP and lawyer Rajvinder Grewal and RSG Law Professional Corporation.
- Records cited in proceedings before the Law Society of Ontario show that two payments of $250,000 each were made to the Sikh Spiritual Centre Toronto on April 7 and April 10, according to the report.
- A key issue in the lawsuit concerns a second charge that was supposed to be registered against the Brampton gurdwara property as security for the financing.
Two Sikh gurdwaras in Ontario have been named in a civil lawsuit over more than $13 million in allegedly unpaid loans, in a dispute that also involves former Canadian Liberal MP and lawyer Rajvinder Grewal and RSG Law Professional Corporation.
The case has been filed in the Ontario Superior Court of Justice by SSMT Management Inc. and Oculus Mortgage GP Inc. against the Sikh Spiritual Centre Toronto (SSCT), commonly known as the Etobicoke Gurdwara, and Nanaksar Thath Ishar Darbar in Brampton, according to a report by The Canada Nation.
The lenders allege that money advanced to the religious institutions remains unpaid and that legal steps meant to secure the financing against gurdwara properties were not properly completed.
According to the court filing cited in the report, SSMT initially extended a $10-million loan to SSCT on April 25, 2025. The financing arrangement was increased to a $15-million commitment on May 20, with the additional amount intended to be secured against the Nanaksar gurdwara property in Brampton.
Around $12 million was ultimately disbursed, the lenders claim. More than $13 million, including accumulated interest, is now allegedly outstanding.
The loans reportedly carried an interest rate of up to 15 per cent during the first six months, rising to 24 per cent thereafter. At a 24 per cent annual rate, interest on a principal of $15 million would amount to about $300,000 a month.
Dispute over security on Brampton property
A key issue in the lawsuit concerns a second charge that was supposed to be registered against the Brampton gurdwara property as security for the financing.
Davinder Khattra, the owner and operator of RSG Law, was allegedly responsible for registering the charge. SSMT claims that this did not take place, leaving the lender without the property security it says was contemplated under the financing arrangement.
Khattra is also facing separate disciplinary proceedings before the Law Society of Ontario, according to the report.
On September 11, Ontario Superior Court Justice Frederick L. Myers ordered that the Brampton property not be sold or further encumbered pending a hearing scheduled for January.
There are, however, differing accounts over the current status of the dispute.
“My understanding is that this matter has been resolved,” Simon Bieber, a lawyer representing Grewal, was quoted as saying in an emailed statement.
Maria Naimark, who represents SSMT, disputed that account, saying in an emailed statement that the matter “has not been resolved”.
Transactions involving RSG Law trust account
The dispute comes amid scrutiny of other financial transactions involving RSG Law’s trust account and the two religious institutions.
Records cited in proceedings before the Law Society of Ontario show that two payments of $250,000 each were made to the Sikh Spiritual Centre Toronto on April 7 and April 10, according to the report. A further $250,000 payment was reportedly made to Guru Nanak Darbar, the name commonly used for the Brampton gurdwara.
Separately, court records in a case concerning alleged cheque fraud against the Bank of Nova Scotia reportedly traced another $250,000 in disputed funds through RSG Law’s trust account to the Sikh Spiritual Centre Toronto.
The circumstances surrounding the transactions remain the subject of legal proceedings.
Grewal, law firm face other civil claims
The gurdwara dispute forms part of a broader series of civil proceedings involving Grewal and RSG Law relating to lending and real estate transactions.
The Canada Nation reported that claims across the various proceedings exceed $200 million. Some include allegations of fraud, though those allegations have not been proven in court.
Grewal is also the subject of disciplinary proceedings before the Law Society of Ontario and has undertaken not to practise law while those proceedings are underway.
Both the Sikh Spiritual Centre Toronto and Nanaksar Thath Ishar Darbar are federally registered charities. It remains unclear from the reported court material whether the loans at the centre of the dispute were intended to finance charitable activities.
The claims and allegations made in the civil proceedings have not been adjudicated by the court.
