Raj Grewal, his wife, father and mother’s estate named in bombshell $137 million lawsuit alleging widespread real estate fraud; Toronto law firm Torkin Manes also sues him

A group of private lenders has filed an explosive $137 million lawsuit with the Ontario Superior Court of Justice’s Commercial List alleging widespread fraud against former Brampton MP Raj Grewal; they are also seeking the appointment of a receiver to secure about 40 collateralized properties connected to him and the firm he founded, RSG Law, mostly located in Brampton and Mississauga. 

As Grewal faces more legal action connected to his real estate dealings and his alleged failure to pay loans, while allegations of fraud and abuse mount against RSG Law, Toronto law firm Torkin Manes LLP has also brought a lawsuit against him, alleging in a statement of claim filed to the Ontario Superior Court of Justice in early June that the former politician has failed to pay for services the firm provided.  

Grewal is listed as the first defendant in the $137 million statement of claim filed two weeks ago, as the former MP faces a growing list of legal claims against him and the law firm he founded, related to allegations of fraud and conspiracy in connection with real estate and mortgage transactions. Grewal’s wife, Shikha Kasal, his father, Avtar Grewal and his late mother’s estate are also named as defendants. 

The lawsuit filed by the Cesana family and 17 other plaintiffs names a total of 53 defendants, mostly numbered companies that represent properties used to back $107 million in loans provided by the plaintiffs starting in January of 2022.

None of the allegations have been tested in court and no statement of defence has been filed in the case.

Simon Bieber, the lawyer representing Raj Grewal in his lawsuit against The Pointer, sent an email today, Tuesday, July 7, writing that it’s his understanding the plaintiffs and defendants in the Cesana matter are working toward an agreement to pay back the amounts allegedly owing to the plaintiffs. He provided a comment Bieber said was from the plaintiffs’ lawyer. The Pointer could not confirm this. 

The lawyer representing some defendants in the case, including Kailash Chander Kasal, who is Raj Grewal’s wife’s father and is listed as one of the “Personal Guarantors” along with Raj Grewal, Shikha Kasal and Avtar Grewal, said his clients did not know about the lawsuit until The Pointer attached it to a request for comment.

“My clients and I have just learned of this claim by way of its attachment to your email,” lawyer Micheal Simaan wrote in a response to The Pointer Tuesday. 

“My clients have not been served with this claim and suspect that is because the plaintiffs have realized that my clients have been incorrectly named and/or included in this action.

“I would strongly suggest that you confirm whether there is an intention upon serving my clients as it would be an abuse of process to issue a claim just for the purpose of publicizing it through the media but without any intention of actual (sic) proceeding with it. If it is deemed to be an abuse of process, the case law is clear that there would be no privilege attaching to it that would protect against a claim for libel and slander.

“As we have no knowledge of this pleading or its contents, we cannot comment on same.”

Raj Grewal was a Brampton Liberal MP who announced in late 2018 that he was resigning due to a gambling problem. He had borrowed millions in loans, including from his constituents, to cover gambling debts, and told some constituents he needed money to repay student loans, then immediately used the funds to gamble at an Ottawa casino.

(The Pointer files)

At the centre of the claim is an allegation that Raj Grewal, the firm he founded, RSG Law, his father Avtar Grewal, another lawyer connected to Raj Grewal, Rajkiran Sidhu and his law firm, Rajkiran Sidhu Law Professional Corporation, allegedly orchestrated a scheme that saw more than $107 million in mortgage loans secured, then, without the knowledge of the lenders, their mortgage loans were “unlawfully” removed from the property title and stripped of their registered security. 

The explosive lawsuit, filed June 26, goes further. It alleges Raj Grewal and Davinder Singh Khattra, both lawyers who were working with Grewal’s firm, RSG Law (named for his initials), arranged a network of mortgage commitments against properties across Ontario. Then, the statement of claim alleges they “unlawfully” discharged the mortgage charges on those properties without authorization, and used the same properties as collateral to borrow fresh money from other lenders, effectively erasing the initial mortgage loans. 

“The Plaintiffs require the immediate assistance of this Court to enforce the security promised to them by the Debtors, which the RSG Defendants (Raj Grewal, Khattra and RSG Law) and others have unlawfully removed,” the lawsuit filed by Ryan Atkinson of Atkinson Law and Dominique Michaud of Robins Appleby LLP, on behalf of their clients, alleges. 

The Pointer sent a request for comment to all the defendants named in this article. Only Simon Bieber, the lawyer representing Raj Grewal in his lawsuit against The Pointer, responded, writing that he understands a repayment agreement between the plaintiffs and the defendants is being worked on. No statement of defence has been filed with the court.   

The lawsuit alleges that, “Around August 2024, the Plaintiffs discovered that the security from one of the Initial Transactions had not been properly registered, that the RSG Defendants did not provide good and valid title insurance to the Lenders, and that the funds were not sent to the borrowers but rather re-directed for the RSG Defendants own purposes.”

Then, when the allegedly fraudulent conduct was exposed, a month later in September of 2024, the plaintiffs and Raj Grewal, working with Khattra and RSG Law, negotiated a series of commitments using personal property, shares of companies and “other forms of security” to secure the borrowed amounts from the plaintiffs that had been “unlawfully” removed from mortgage titles, and in some cases replaced by other mortgages from other lenders.

Days after that negotiated agreement, “As soon as September 17, 2024, some of the Defendants (Mr. Grewal and Mr. Khattra being lawyers) began unilaterally discharging” many of the mortgages, “without the knowledge or authorization of the Mortgagees,” then registered new mortgages on the same properties that were unlawfully given priority over the original loans, the lawsuit alleges.

“The RSG Defendants (Raj Grewal, Khattra and RSG Law) and the Debtors paid back approximately forty three million dollars ($43,000,000.00) to the Lenders, but also began unlawfully discharging and deleting much of the Lenders’ security for the further sixty four million one hundred and fifty thousand dollars ($64,150,000.00) that remain owing to the Lenders, without the knowledge or authorization of the Lenders,” the lawsuit alleges. “The Debtors then borrowed more money from third parties lenders and registered additional charges on the same properties that previously stood as security for the Loans, with such new charges now registered ahead in priority to the Lenders security.”  

According to the lawsuit, about 40 properties plus personal guarantees, company share pledges and other securities were allegedly arranged as collateral by Grewal and his law firm. 

“Around December 2025, after the Lenders realized once again that the RSG Defendants and Debtors had unlawfully discharged, deleted, and dissipated their security, the Lenders and the RSG Parties arranged a further Sixth Commitment (defined below) for fifty six million one hundred and fifty thousand dollars ($56,150,000.00) to secure the remaining Debt, which was signed on December 9, 2025, a Share Pledge for shares of Swift Car Wash, and an assignment of Mr. Grewal’s life insurance policy, among other forms of security.”

Part of this deal included the life insurance policy of Raj Grewal which he agreed to hand over as security and has liability coverage of up to $25 million; the plaintiffs are seeking through their lawsuit to ensure their security over Grewal’s life insurance.   

Several of the properties named as part of the security sought by the lawsuit are located in Brampton and Mississauga, including two houses located at 4 and 6 Forestbrook Court in Brampton. Both houses are part of a separate lawsuit filed against Raj Grewal and his father, and a judge ruled in that case that the homes now belong to the plaintiffs, not the Grewals.

Other valuable properties highlighted in the Cesana et al lawsuit worth about $50 million are listed as part of the securities requested by the plaintiffs. They are the subject of other lawsuits brought by plaintiffs who allege they are owed money by Raj and Avtar Grewal for mortgage loans provided to the Grewals when they bought the properties.

Despite the agreement in December, the Cesana lawsuit alleges the corresponding mortgages were never registered against the subject properties. “It is unclear if the RSG Parties will adhere to their obligations under the many other forms of security promised to the Plaintiffs.”   

The plaintiffs are requesting through their legal action to have the court appoint a receiver over the properties used by Raj Grewal and the other guarantors named in the lawsuit; to order the company share pledges be honoured; to recognize a priority claim over Raj Grewal’s life insurance policy; and to “pierce the corporate veil” the guarantors and RSG defendants have used to carry out “gross negligence and/or fraud,” the lawsuit alleges.

The Cesana lawsuit was filed about three weeks after Toronto law firm Torkin Manes LLP filed a lawsuit against Raj Grewal and his father, Avtar, alleging the firm has not been paid more than $123,000 in fees for services Torkin Manes provided to the Grewals between January 2025 and February 2026.

“At no time did any of the Defendants dispute the legal services rendered by the Plaintiff, the invoices issued by the Plaintiff, or the amounts owing thereunder. Rather, Rajvinder (Raj) repeatedly acknowledged the outstanding invoices and represented that payment would be forthcoming,” the Torkin Manes lawsuit alleges. “Despite repeated demands by the Plaintiff, the Defendants failed, refused, or neglected to pay the Debt.”

The Grewals did not respond to a request for comment. 

The latest lawsuits follow previous reporting by The Pointer highlighting legal action against Raj Grewal and the law firm he founded. It is also named in one case that shows RSG Law is connected to $3 million in fraudulent cheques. 

According to another lawsuit Grewal allegedly defaulted on a $1.2 million loan when he was “desperate” for money last year, missed a court-ordered payment, and was forced to hand over the two Forestbrook houses. 

Earlier in June, The Pointer reported on two lawsuits, one seeking $1.6 million, alleging Raj Grewal and his father Avtar worked with lawyer Rajkiran Sidhu to allegedly strip the plaintiff’s mortgage loan to the Grewals, for the purchase of an Oakville property, off title records. The same property is listed as one of the securities sought in the Cesana lawsuit.

A lawsuit filed by Vector Financial Services and Olympia Trust, seeks $25.6 million from Raj Grewal and his company, RSG Mayfield, over an allegedly unpaid $25 million loan that was used to purchase a roughly 20-acre Brampton property. 

RSG Law and Avtar Grewal are accused of fraud by WIGI Restructured Bond Corporation in a lawsuit over a Brantford-area property, with allegations that the property was sold without paying back the lender.  

Raj Grewal is currently suing The Pointer for $12 million, over reporting that detailed how the law firm he founded is connected to the Scotiabank fraud investigation which resulted in the bank freezing the account of RSG Law after $3 million from fraudulent cheques ended up in RSG’s bank account when the funds were allegedly moved by entities directly connected to Raj Grewal.  

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