Raj Grewal faces explosive allegations of fraud in $1.6M lawsuit, another $25M suit filed against former Brampton MP; while legal troubles mount for law firm he founded

Former Brampton MP Raj Grewal is being sued in two separate lawsuits for failing to make payments on a $25 million property in Brampton; and for an alleged scheme to defraud lenders out of $1.6 million in connection to a piece of land in Oakville.

The $1.6 million lawsuit over the Oakville property alleges Raj Grewal and his father, Avtar Singh Grewal, along with other defendants, “conspired” to “unlawfully” remove the plaintiff from the $1.6 million mortgage title, without paying the outstanding amount owed to the plaintiffs for the mortgage they provided on the Oakville property purchased by the Grewals.

“The object of the conspiracy was to unlawfully remove the Plaintiffs registered mortgages/charges from title without payment,” the lawsuit brought by Baljit Deol, McNalley Holdings Inc., Amrik Nijjar and Nirmal Minhas alleges.

The statement of claim alleges that Raj Grewal and his father, Avtar Grewal committed fraud and conspiracy alongside the firm Raj Grewal founded, RSG Law and its lawyer Davinder Singh Khattra, in a scheme to buy the property then remove the mortgage lender’s name from the title, without paying the plaintiff the outstanding money owed for the mortgage.

The plaintiffs thought they had a second position mortgage but, contrary to the agreement, their loan was listed in fifth position and no title insurance was obtained, even though it was required. 

It’s alleged the plaintiff’s mortgage was eventually discharged with no authority and without giving the money owed to the lenders.

According to the lawsuit, Raj Grewal and his father acted as the president and/or director of the company, RSG Oakville Holdings Inc., created to purchase the Oakville property.

It is alleged that another lawyer and his firm, Rajkiran Sidhu and Rajkiran Sidhu Law Professional Corporation, were supposed to represent the plaintiff in the transaction, but instead subsequently worked with Raj Grewal and his father to help remove the plaintiff’s name from the official mortgage title records.

The lawsuit, filed to the Ontario Superior Court of Justice, also alleges that Avtar Grewal, who participated in the unlawful removal of the plaintiff’s mortgage, also applied his own mortgage as a lender on the property, when he was also a borrower as the president and/or director of the company that purchased the property (there are multiple mortgages on the property owned by the Grewals totalling about $24 million).  

It is alleged that, “Avtar Singh Grewal (Mortgage No. 4) registered as HR2106353 on May 26, 2025 for the amount of $6,000,000.00.” This appears to suggest that Avtar Grewal personally gave $6 million to the company he and his son own, as a mortgage on the property it bought.

Requests for comment sent to RSG Law, Khattra, and lawyers for Raj Grewal and Avtar Grewal, and Rajkiran Sidhu Law Professional Corporation were not responded to.  

The plaintiffs are seeking to have their original mortgage and its terms restored on title; or be awarded equivalent damages in the amount of $1.6 million plus interest and costs; along with “damages for negligence, breach of contract, breach of fiduciary duty, breach of undertaking, fraudulent misrepresentation and/or conspiracy” against Rajkiran Sidhu and Rajkiran Sidhu Law Professional Corporation, and RSG Law, the firm founded by Raj Grewal.

As of Wednesday morning, June 24, there was no statement of defence filed with the court.

Grewal has told The Pointer, through his lawyer, that he is no longer the owner of RSG Law.

RSG Law, which is facing mounting legal issues The Pointer has previously reported on, including a lawsuit filed by a Brampton family, has been served with another lawsuit over allegations of fraud and breach of contract brought by a Georgina couple who allege RSG Law failed to transfer approximately $841,000 for a mortgage on a property they purchased. 

This follows a lawsuit by WIGI Restructured Bond Corporation filed on May 25 alleging RSG Law, along with Avtar Singh Grewal (Raj Grewal’s father) and other defendants, attempted to defraud it out of approximately $4 million in connection to a land sale in the Brantford area. WIGI filed a $5.5 million lawsuit against Avtar Grewal and the law firm his son founded. Raj Grewal is not a defendant in that lawsuit. 

These lawsuits are in addition to the lawsuit filed by the Brampton family against RSG Law after $714,000 from a home sale transaction was frozen inside the trust account of RSG Law when an investigation by Scotiabank into fraudulent cheques found some of the money ended up in the law firm’s accounts. The court filings by Scotiabank do not allege any wrongdoing by RSG Law and the firm has said through its legal representation that it did nothing wrong when the fraudulent cheques were deposited into its accounts.

Transactions being investigated by Scotiabank involve deposits received by Rajkiran Sidhu Law Professional Corporation that drew funds from fake cheques. Sidhu has stated he had nothing to do with the fraudulent funds that ended up in his accounts. Some of that money, after more transactions, ended up in RSG Law’s Scotiabank accounts, which were subsequently frozen.

Raj Grewal, meanwhile, is facing a second lawsuit in addition to the statement of claim regarding the Oakville property he purchased with his father. 

Filed to the Ontario Superior Court of Justice on May 8 by Vector Financial Services Limited and Olympia Trust Company, the suit alleges Grewal and a company he owns, RSG Mayfield, owe the plaintiffs $25.6 million, after lending Grewal $25 million to purchase the nearly 20-acre Brampton property last year. Grewal is listed as the sole director of RSG Mayfield in Ontario business registration documents. The company address is the same as RSG Law, the firm he founded, 6605 Hurontario Street Suite 400, Mississauga.

The Statement of Claim alleges in April of this year Raj Grewal and his company failed to make the scheduled interest payment for the property RSG Mayfield purchased a year ago. The address of the property is not listed in the statement of claim. Vector and Olympia agreed to lend Grewal $25 million last year to purchase the nearly 20-acre property, which according to the lawsuit was to be turned into a residential housing development. 

Grewal’s lawyer did not respond to a request for comment. As of Wednesday morning, June 24, no statement of defence had been filed with the court.

A photo of Raj Grewal’s former Brampton constituency office from his time as a Member of Parliament.

(The Pointer Files) 

The plaintiffs are seeking $25.6 million from Raj Grewal, “plus applicable contractual interest, protective disbursements and legal fees in respect of his obligations owing as Guarantor pursuant to the Loan,” and other costs.   

On June 22, RSG Law was hit with another lawsuit, by a couple in Georgina who allege RSG Law and its lawyer Davinder Khattra failed to pay off a more than $800,000 mortgage on a property they purchased, despite the money being sent to the RSG trust account. 

Lindsay and Casey Sellers are seeking $870,000, plus $500,000 in damages for “fraud and fraudulent misrepresentation, breach of undertaking, breach of trust conversion, unjust enrichment, breach of fiduciary duty, breach of contract, conspiracy, and intentional interference with economic relations.” 

The statement of claim names RSG Law and Davinder Khattra.  

The lawsuit details that the Sellers purchased a property in Georgina in August last year. The owners of the property at the time used RSG Law and Khattra as their legal representation for the sale. 

When the couple purchased the property, a $837,299.93 mortgage was registered on the title with CIBC. 

On October 1, the plaintiffs wired $1,031,840.71 to RSG Law to cover this amount and other costs. 

The next day, an official with RSG Law informed them Khattra would be “making the payment today”, referring to the outstanding mortgage amount.  

But that never happened, the statement of claim alleges. 

For months, lawyers for the plaintiffs attempted to obtain proof from RSG Law and Khattra that the mortgage had been paid off to CIBC, but were unsuccessful, the claim alleges. 

Claims by RSG and Khattra that the payment was made were never supported with documents, the lawsuit alleges. 

“On or about February 17, 2026, the Defendants provided what they represented to be payout correspondence and a certified cheque relating to the (mortgage). The Defendants never provided confirmation from CIBC that the certified cheque was received, negotiated, credited or otherwise applied to discharge the (mortgage),” the lawsuit alleges.

It continues: “On or about March 23, 2026, CIBC advised the Purchasers counsel that the CIBC Charge remained active and that $814,113.60 remained owing. When confronted with that information, Mr. Khattra represented that he struggled to understand how that was possible because the CIBC Charge had been paid out and payment confirmation had been provided.”

The next day, Khattra said “his office had been actively following up with CIBC’s discharge department and had previously arranged for payout and received confirmation. Mr. Khattra did not provide confirmation from CIBC supporting those representations,” the lawsuit alleges, adding this was completely contrary to what Khattra said in October 2025 when he claimed the payment was being made at that time. At least five months later, long after the property transaction, what should have taken a matter of days, still had not been done. CIBC still had not received the money from RSG Law. This was at least six months before the firm’s trust accounts with Scotiabank were frozen due to the separate fraudulent cheque issue which RSG says it had no involvement with.

“In correspondence with CIBC in March 2026, Mr. Khattra referred to the payout cheque as being enclosed at that time, rather than as having been delivered to CIBC on or about October 2, 2025. On or about March 26, 2026, the defendants also forwarded correspondence that Mr. Khattra had purportedly sent to CIBC’s Mortgage Discharge Escalations Unit, but the email had been sent to the incorrect address.”

In April, the plaintiffs learned from CIBC that several requests to discharge the mortgage had been made, one in October 2025, another in November–both of which were cancelled–then another on March 24, 2026. The final request was missing information, the lawsuit alleges. 

“These cancellations taken together with RSG Law’s simultaneous representations to the Purchasers’ counsel that the CIBC Charge had been paid out, are strong evidence that the funds were never applied to their intended purpose and that RSG Law was actively concealing that fact,” a factum filed with the court details.

Instead, RSG and Khattra “continued to represent that the CIBC charge was ‘closed out’ that CIBC had escalated the matter and that the discharge would be registered immediately. The defendants did not provide confirmation from CIBC that the CIBC Charge had been paid out.”

The plaintiffs allege this was possibly a tactic to provide RSG Law and Khattra time to disperse the funds to others, which were supposed to be used to pay off the mortgage on the property they purchased.

Raj Grewal in Brampton when he was one of the city's Liberal MPs, with former prime minister Justin Trudeau, shortly before Grewal stepped down in 2018 following gambling problems after he spent much of his time in Ottawa at a casino where he racked up millions of dollars in debts.

(The Pointer file photo)

Court documents obtained by The Pointer regarding the ongoing legal troubles RSG Law is facing, show at the end of May, there was only about $340,000 in RSG Law’s trust account with Scotiabank.

“By retaining, transferring, disbursing, or otherwise dealing with the CIBC Discharge Funds for purposes other than discharging the CIBC Charge, the Defendants converted the Purchasers’ funds for their own benefit or for the benefit of others. The Defendants were enriched by receipt and control of those funds, the Purchasers suffered a corresponding deprivation, and there is no juristic reason for the Defendants’ enrichment,” the lawsuit alleges. “Beginning at a time unknown and continuing to the present, the Defendants, together with any persons unknown whose identities will be particularized after discovery, agreed or acted in concert to misappropriate, divert, conceal, or otherwise deal with the CIBC Discharge Funds for the CIBC Charge for purposes other than discharging the (mortgage).”

On the same date the plaintiffs' lawsuit was filed, the court granted an injunction to have the banks involved provide documentation showing what RSG did with the money from the plaintiffs once it arrived in their accounts. 

Justice Fred Myers, writing in a June 22 decision, believed there was a serious risk the money had already been dispersed from the RSG accounts, particularly after the actions of Khattra to allegedly deceive the plaintiffs about the payout of the CIBC mortgage. 

“Not only did he (Khattra) not forward the funds to CIBC, but after coming under pressure to account for them, he fraudulently purported to register a discharge of the mortgage on title without CIBC’s authority and without paying it. CIBC denies the efficacy of this filing,” Myers wrote. “I infer a serious risk of dissipation of the funds by the law firm and Mr. Khattra. I do so based on the brazenness of their fraud and their efforts to stall the Plaintiffs from learning about their failure to pay the funds to CIBC as required. The creation and registration of a fake discharge could only be to buy time as it would always be discovered as soon as CIBC came looking for its money,” Myers wrote in his scathing order. 

In a factum filed as part of the request to freeze RSG Law’s accounts up to $870,000 and trace the location of the money, the lawyers for the plaintiffs allege, “This is not the first time Mr. Khattra and RSG Law have engaged in such conduct,” referencing the lawsuit by WIGI which alleges Khattra and RSG Law “engaged in a ‘seemingly intentional and dishonest scheme’ to conceal the sale of property from a mortgagee and that there was a ‘serious risk’ they would dissipate assets.”

The Pointer has previously detailed the allegations in that lawsuit.

Justice Myers offered a harsh warning to RSG Law in his June 22 order regarding the alleged fraud against the plaintiffs who thought they had purchased a new home last fall without issue.

“Putting people who commit this kind of overt fraud on notice is just an invitation to them to take additional steps to frustrate the reach of the civil law and to further prejudice the Plaintiffs’ rights. Perhaps in their brazenness, they have not yet moved the money. One never knows until you look.”

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