Two Sikh gurdwaras in Ontario have been named as defendants in a civil lawsuit seeking the repayment of more than $13 million in loans, in a case involving former Liberal MP and lawyer Rajvinder Grewal and his law firm, RSG Law Professional Corporation.According to a report published by The Canada Nation on September 18, SSMT Management Inc. and Oculus Mortgage GP Inc. have filed the lawsuit in the Ontario Superior Court of Justice against the Sikh Spiritual Centre Toronto (SSCT), also known as the Etobicoke Gurdwara, and Nanaksar Thath Ishar Darbar in Brampton.The lenders allege that loans extended to the religious institutions were not repaid and that paperwork intended to secure the financing against gurdwara properties was not properly completed by a lawyer associated with RSG Law.The report said SSMT extended a $10-million loan to SSCT on April 25, 2025. On May 20, the loan was expanded to a $15-million commitment, with the additional financing intended to be secured against the Nanaksar gurdwara property in Brampton.According to the lenders’ court filing, approximately $12 million was disbursed, while more than $13 million, including interest, remains outstanding.The loans carried interest rates of up to 15 per cent for the first six months, increasing to 24 per cent thereafter. At the latter rate, the interest on $15 million would amount to approximately $300,000 a month, The Canada Nation reported.Alleged failure to register property chargeDavinder Khattra, the owner and operator of RSG Law, was allegedly responsible for registering a second charge against the Brampton property. However, SSMT claims that the charge was never registered, potentially leaving the lender without the intended security for the loan.The report noted that Khattra is facing separate disciplinary proceedings before the Law Society of Ontario.On September 11, Ontario Superior Court Justice Frederick L. Myers ordered that the Brampton property could not be sold or further encumbered pending a hearing scheduled for January.However, the parties have given conflicting accounts of the status of the lawsuit.“My understanding is that this matter has been resolved,” Simon Bieber, a lawyer representing Grewal, said in an emailed statement, according to The Canada Nation.Maria Naimark, the lawyer representing SSMT, said in an emailed statement that the matter “has not been resolved”.Financial links between gurdwaras and RSG LawThe report also highlighted financial transactions involving RSG Law’s trust account and the two gurdwaras.According to records cited in proceedings before the Law Society of Ontario, payments of $250,000 each were made to the Sikh Spiritual Centre Toronto on April 7 and April 10. Another $250,000 payment was reportedly made to Guru Nanak Darbar, the commonly used name for the Brampton gurdwara.In a separate case involving alleged cheque fraud against the Bank of Nova Scotia, court records reportedly traced another $250,000 in disputed funds to the Sikh Spiritual Centre Toronto through RSG Law’s trust account.The circumstances surrounding these transactions remain part of ongoing legal proceedings.Wider legal proceedingsGrewal and RSG Law are facing a series of civil claims involving lending and real estate transactions. According to The Canada Nation, the combined claims exceed $200 million. Some of the proceedings include allegations of fraud, which have not been proven in court.Grewal is also facing disciplinary action by the Law Society of Ontario. He has undertaken not to practise law while the proceedings against him continue.The Sikh Spiritual Centre Toronto and Nanaksar Thath Ishar Darbar are federally registered charities. The report said it was unclear whether the loans were intended to support charitable activities.The allegations in the civil proceedings have not been tested in court.