Former Liberal MP Rajvinder “Raj” Grewal.
A gurdwara in Brampton has now become part of the expanding legal issues surrounding former Brampton East MP and lawyer Rajvinder “Raj” Grewal.
Nanaksar Thath Ishar Darbar, which runs a gurdwara on Gore Road in Brampton, is one of two Sikh temples named as defendants in a lawsuit that seeks over $13 million in loan repayments.
The other temple involved is the Sikh Spiritual Centre Toronto, better known as the Etobicoke Gurdwara.
This lawsuit was filed earlier this month in Ontario Superior Court by private lenders SSMT Management Inc. and Oculus Mortgage GP Inc., claiming that both temples jointly secured financing that later rose to $15 million. Grewal is also listed as a guarantor.
The complaint states that the loans were intended to be secured against both temple properties. However, the lenders claim that a charge securing the loan was never registered against the Brampton property despite an agreement made by lawyer Davinder Khattra from RSG Law, which was founded by Grewal.
The lenders assert that roughly $12 million of the agreed financing was actually disbursed and that more than $13 million, including unpaid interest, remains outstanding.
The loan had a high-interest rate, escalating to 24 percent after an initial period. At this rate, the monthly interest payment on $15 million would amount to about $300,000.
The situation has led to conflicting statements regarding its status.
Grewal’s lawyer, Simon Bieber, informed the media he believed the issue had been settled. A representative from the Sikh Spiritual Centre Toronto also claimed it had been resolved.
However, Maria Naimark, representing the lenders, stated that the case is still ongoing.
This lawsuit adds to a series of legal challenges involving Grewal and RSG Law, with sums involved reaching into hundreds of millions of dollars.
The Law Society of Ontario is investigating Grewal for alleged misconduct related to mortgage transactions, trust funds, and other financial dealings. The regulator noted there are reasonable grounds to believe allowing him to continue practicing could pose significant risks to public safety or justice administration.
Grewal has consented not to practice law while his case is reviewed by the Law Society Tribunal. He has denied all allegations through his attorneys.
The former MP’s legal issues have been mounting over several years.
Grewal served as Brampton East’s Liberal MP from 2015 until he departed from party caucus in 2018. He stepped back from federal politics after admitting he had a gambling addiction that resulted in millions of dollars in personal debt. He did not run for re-election in 2019.
In 2020, RCMP charged Grewal with four counts of breach of trust and one count of fraud exceeding $5,000. These charges eventually became part of court proceedings.
The recent civil cases are distinct from earlier criminal charges and involve Grewal along with RSG Law and other individuals and companies.
A number of recent lawsuits have alleged financial misconduct connected with real estate and mortgage dealings. The Law Society has also taken measures against Khattra who succeeded ownership at RSG Law by suspending his license during their investigation process.
None of these allegations within this latest civil suit or those currently before courts and tribunal should be regarded as proof of wrongdoing unless proven otherwise.
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