Two Ontario gurdwaras are facing a lawsuit over more than $13 million in loans that were secured against their properties, adding another legal dispute to the growing list of cases involving lawyer and former Liberal MP Rajvinder Grewal.Sikh Spiritual Centre Toronto (SSCT) and Nanaksar Thath Ishar Darbar were sued in September by two companies seeking repayment of the loans. The case was filed in the Ontario Superior Court of Justice, Canadian media outlet The Globe and Mail reported.The dispute centres on loans arranged through RSG Law Professional Corporation, the law firm founded by Grewal. The companies allege that the firm failed to complete paperwork needed to properly secure part of the loans against the gurdwaras’ properties.The claims are part of a wider series of lawsuits involving Grewal and RSG Law. The combined value of the civil claims is more than $200 million, with some cases containing allegations of fraud. None of the allegations have been proven in court.According to court documents, SSMT Management Inc. provided a $10 million loan on April 25 last year secured against the property of Sikh Spiritual Centre Toronto. On May 20, the arrangement was increased to a $15 million commitment, with the additional amount to be secured against the Nanaksar property in Brampton.The loan carried an interest rate of up to 15% for the first six months, which amounted to about $187,500 a month. The rate was then set to increase to 24%, or about $300,000 a month.The lender alleges that Davinder Khattra, who operated RSG Law, was responsible for registering a second charge against the Brampton property but did not complete the process. The lender argues that this created uncertainty over whether the loan was properly secured.In a September 11 ruling, Ontario Superior Court Justice Frederick L. Myers ordered that the Brampton property could not be sold or used as security for another loan until a further hearing scheduled for January.There is also a dispute over whether the case has been resolved. Grewal’s lawyer, Simon Bieber, said in an emailed statement to The Globe and Mail that his understanding was that the matter had been resolved. Maria Naimark, the lawyer representing SSMT, said: “It has not been resolved.”Court records show that the gurdwaras also received money from RSG Law’s trust account in separate transactions.Records filed in proceedings before the Law Society of Ontario show that SSCT received $250,000 from RSG Law on April 7 and another $250,000 on April 10. A further $250,000 payment was made to Guru Nanak Darbar, another name for the Brampton gurdwara.In a separate case involving alleged cheque fraud against the Bank of Nova Scotia, another $250,000 transferred to SSCT was traced through RSG Law’s trust account.According to court filings, the money was part of more than $5.3 million transferred from lawyer Rajkiran Sidhu’s trust account after he received three cheques totalling $6.095 million. The bank later traced part of the money to RSG Law and, ultimately, to several recipients including SSCT.The bank has said in court documents that the $250,000 paid to SSCT has not been recovered.Both gurdwaras are federally registered charities. Public records also show that some members of their boards overlap, although it is unclear whether the disputed loans were intended to support charitable activities.Grewal is separately facing disciplinary proceedings before the Law Society of Ontario and has agreed not to practise law while the proceedings continue. Khattra and Sidhu are also facing disciplinary action.
