‘Desperate’ for funds, Raj Grewal defaults on loan, misses court ordered payment, forced to hand over 2 houses and pay $1.2M after losing lawsuit

After a successful lawsuit filed last year, the Ontario Superior Court of Justice recently ordered former Brampton MP Raj Grewal and his father, Avtar Singh Grewal, to pay approximately $1.2 million and hand over possession of their two Brampton houses after he defaulted on a mortgage loan when he was allegedly “desperate” for money last year.

The houses, located at 4 and 6 Forestbrook Court, have been put up for sale by the plaintiff in the case for $2.8 million each. Despite the court handing down its decision in the lawsuit in February this year with specific orders that the defendants had to follow, Raj Grewal has already violated the judge’s ruling, failing to make the payments she demanded.

In a February 27 decision, Justice Judy Fowler Byrne of Ontario’s Superior Court of Justice ordered Raj and Avtar Grewal to pay Brampton resident Gurmat Singh $1.2 million and “deliver possession” of 4 and 6 Forestbrook Court in Brampton. 

Court documents in the case, which dates back to April 2025, show a pattern by Raj Grewal of failing to make payments on the mortgage loan starting last year, making allegedly misleading claims about payments that were due and then failing to make payments ordered by the court after the plaintiff filed his lawsuit against the Grewals in February of this year. As of May 27, no payments had been made according to the court documents. 

Raj and Avtar Grewal did not respond to questions.

In their statement of defence they claim they did not default on the loan, that they made a $40,000 payment toward it and that the 30 percent interest rate was excessive and illegal.

In an affidavit sworn on July 25, 2025, Kiranjeet Kaur Sangha, the daughter-in-law of Gurmat Singh, who was acting as his lawyer through a power of attorney agreement, detailed the mortgage loan her father-in-law, who knew Raj and Avtar Grewal, gave them for the two Brampton houses last year.

“On February 5 or 6 of this year [2025], I took a telephone call from Raj. He sounded desperate, that he needed funds, but promised that they were only for 1 month. Because of the alleged urgency of the matter, I requested that his office prepare all the documents and provide the title and execution searches,” Sangha’s affidavit details. 

Because of the “communicated urgency” from Raj Grewal, she agreed to provide a $950,000 loan for one month on behalf of her father-in-law, with an interest rate of 30 percent, which Raj Grewal himself proposed and is perfectly legal. 

“I stress that it was Raj who proposed the term (one month) and the 30% interest rate,” her affidavit emphasizes, stressing that the loan was to the two men “personally.”

When checking the title records for the properties, Sangha discovered a second mortgage had already been taken out for 6 Forestbrook on February 5 of 2025 for $390,000. 

“This had not been disclosed and was contrary to the commitment. I spoke to Raj—a fellow lawyer—and he hemmed and hawed and said words to the effect ‘you know me’, ‘you have my word that this will be paid back in a month’, etc.  They sought out the loan and they proposed the interest rate. And when there was a title problem prior to closing, Raj—the lawyer—literally begged me to advance, nevertheless. I agreed to close the transaction,” Sangha stated in her sworn affidavit.

The $950,000 bank draft was written out to RSG Law, the firm founded by Raj Grewal. 

After the month passed, according to Sangha’s affidavit, and without repaying the $950,000 plus interest as was agreed to, Raj Grewal wished to “renew the loan” but never provided renewal documentation. 

Sangha then contacted Terry Walman, a lawyer. 

Former Brampton MP Raj Grewal (centre) resigned in 2019 after he publicly declared a gambling problem had led to “significant personal debts” in the millions of dollars. In September 2020 Grewal was charged by the RCMP with fraud and breach of trust during his time as an MP. In March 2023, Grewal was found not guilty of using his MP position to solicit loans to cover his debts, but the case exposed his disturbing behaviour while serving as an elected official and frequenting an Ottawa casino, when he said a gambling addiction influenced many bad decisions. The trial revealed Grewal had misled his constituents when he asked them for money, claiming it was to pay off student loans, then taking the money almost immediately to the casino to gamble.

(Brampton Board of Trade/Facebook)

On March 24, 2025, a demand letter was sent to RSG Law. The following day, payment in the amount of $26,235 was sent from RSG Law. 

Around the same time, Davinder Singh Khattra, a lawyer with RSG Law, emailed Mr. Walman’s office and offered a payment of $50,000 to ‘pause proceedings for a week’ after the lender had proceeded with legal action against Raj Grewal, Sangha’s affidavit detailed, with supporting documentary evidence to show what unfolded. “I do not know what that was being offered towards, as principal paydown or interest or a fee, but it was rejected.”

In a statement of defence filed on May 9, 2025, Avtar and Raj Grewal denied defaulting on the loan, claiming a payment of $40,000 toward the interest and principal was made through their lawyers, and that receipt of this payment was confirmed by Gurmat Singh’s son, Tarsem Sangha.

This was disputed by Tarsem Sangha who swore his own affidavit for his father’s lawsuit against the Grewals.

“I have read the affidavit of Avtar Grewal and it is very misleading. Attached hereto and marked as Exhibit '1' is a screenshot of my WhatsApp messages and telephone calls and attempted calls to Rajvinder Grewal ('Raj'),” Tarsem Sangha, stated. “I called Raj on March 3 (my calls and texts are shown in green). It was to remind him of the payment in full that was due and expected on March 7. On March 6, 2005 I received a WhatsApp message from Raj. He refers to me as 'Veer Jee', meaning 'brother'. He says 'we need extension' and 'I will call you in 15 minutes'. That day I called him several times and also texted him—but received no response.”  

WhatsApp messages sent to Raj Grewal by the son of the plaintiff in the successful lawsuit against the former Brampton MP. They were included in the plaintiff’s court filings for the case. 

(Ontario Superior Court of Justice)

The plaintiff’s evidence shows the Grewals did not make the $40,000 payment they claimed, and when a smaller amount was finally handed over, it was too late, as steps were being taken to move forward with legal action against Raj and Avtar Grewal for defaulting on the mortgage loan.

The addresses of the houses, 4 and 6 Fernbrook Court in Brampton have been used by both of the Grewals on public documents as their home address.

After Raj and Avtar Grewal failed to make payments following Justice Fowler Byrne’s February decision in the lawsuit, violating the court’s order, on June 3, the Ontario Superior Court of Justice approved a Notice of Garnishment against Raj and Avtar Grewal. The order requires the Bank of Montreal to hold the funds the Grewals owe to Singh, which with interest, have now increased to $1,308,997.44. The Ontario Superior Court of Justice gave Raj and Avtar Grewal ten days from its June 3 Garnishment Order to make the full payment of just over $1.3 million.

This is the latest in a series of legal troubles for Raj Grewal, his father Avtar and RSG Law, the firm founded by the former Brampton MP (he has told The Pointer through his lawyer that he sold RSG Law). 

In May, The Pointer reported that RSG Law was connected to a multi-million fraud investigation launched by Scotiabank. Following the publication of that story on May 14, the website of RSG Law was reduced to a single “Contact Us” page, and the site for Raj Grewal’s development company, RSG Group, was taken offline.

On May 25, development consortium WIGI Restructured Bond Corporation launched a $5.5 million lawsuit against RSG Law over allegations the law firm conspired with Avtar Singh Grewal, Raj Grewal’s father, and others to avoid paying a multi-million mortgage WIGI held on a piece of land in the Brantford area.

On June 5, Harvinderjit and Surinder Waryah filed a statement of claim against RSG Law and its lawyer Davinder Singh Khattra for breach of fiduciary duty. The lawsuit alleges the defendants, RSG Law and Khattra, failed to properly execute their duties to transfer the $715,000 in mortgage funds after Nitan purchased his parents’ house. The transfer was done at the same time RSG Law had its trust accounts frozen as a result of being linked to the fraud investigation ongoing at Scotiabank.

Grewal is also being sued in two separate lawsuits for allegedly 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 Pointer is also reporting on a number of other cases recently filed with the courts that Raj Grewal is directly connected to.

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