The lawsuit, lodged by SSMT Management Inc. and a second creditor, alleges that RSG Law failed to register a second charge on the Brampton gurdwara’s property, a critical step that would have secured the loan against that site.
SSMT provided a $10 million loan on April 25, 2023, secured against Sikh Spiritual Centre Toronto. The amount was raised to $15 million on May 20, 2023, with the additional sum to be secured against the Nanaksar Thath Ishar Darbar in Brampton. The loan carried a 15% interest rate for the first six months—about $187,500 a month—before sliding to 24%, roughly $300,000 a month.
On September 11, Ontario Superior Court Justice Frederick L. Myers issued a preliminary order preventing the sale or further encumbrance of the Brampton property until a hearing in January. The ruling is a direct response to the alleged paperwork lapse by Davinder Khattra, who ran RSG Law.
Grewal’s lawyer, Simon Bieber, asserted that the matter was resolved, but the gurdwara’s counsel, Maria Naimark, disagrees, citing ongoing disputes over the loan’s security. Meanwhile, court filings reveal that RSG Law’s trust account transferred $250,000 to Sikh Spiritual Centre Toronto on April 7 and a further $250,000 on April 10, with an additional $250,000 paid to Guru Nanak Darbar, the Brampton site.
The case sits on a broader legal backdrop: Grewal is barred from practising law while the Law Society of Ontario pursues disciplinary action, and his former associates, Davinder Khattra and Rajkiran Sidhu, face similar scrutiny. The dispute threatens to disrupt the daily prayers of roughly 300 regular attendees at the Brampton gurdwara, who rely on the site for community gatherings.
A judge will reconvene in January to determine whether the Brampton property can be used as collateral again, marking the next pivotal step in the legal battle that could reshape the financial stewardship of two major Sikh institutions in Ontario.