The real estate development company of former Brampton East MP and lawyer Rajvinder “Raj” Grewal has been placed into receivership with lenders owed more than $26 million, according to reports.
Grewal and his Mississauga-based law firm RSG Law is currently under a fraud investigation by Peel Regional Police.
The firm has been named in multiple lawsuits, including one filed by two Sikh temples seeking repayment of more than $13 million in loans.
Grewal has been suspended by the Law Society of Ontario amid the fraud allegations, and the possible “misappropriated and/or misapplied trust monies” by the former MP.
But Grewal is also the sole director and officer of real estate developer RSG Mayfield Inc., which is now in $26.3 million in debt after defaulting on a loan secured against an undeveloped residential property located at 0 Mayfield Road, according to a report by Insolvency Insider Canada.
The developer reportedly planned to build a residential community with 52 single-family homes, 52 townhouses and 260 condominium apartments. The project was financed in 2025 by Vector Financial Services Limited and Olympia Trust Company, but RSG Mayfield stopped making payments the following year.
By Sept. 8, the debt had grown to $26,269,753.66 “excluding continuing interest, legal fees and other enforcement costs,” according to the report.
Former Liberal MP Rajvinder “Raj” Grewal has been suspended by the Law Society of Ontario.
The Mayfield property is also linked to separate litigation by WIGI Restructured Bond Corporation, involving RSG Law, Grewal, and fellow suspended lawyer Davinder Khattra.
A court has appointed TDB Restructuring to sell the development project, with any surplus proceeds to be transferred to AlixPartners for review in related litigation involving the developer’s principal, the report says.
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READ MORE: Ontario judge dismisses breach of trust charges against former Brampton MP Raj Grewal
Grewal was the MP for Brampton East from 2015 to 2019, and stepped down in 2018 over allegations he used his position to solicit millions of dollars in loans to help pay off gambling debts. The former MP left the Liberal caucus in 2018 after his gambling issues were made public.
He was acquitted on two breach of trust charges after the Crown suggested Grewal offered help with visas or special access to Prime Minister Justin Trudeau in exchange for financial help from friends and businesspeople in his riding. Grewal later filed a lawsuit seeking damages from the RCMP and the Ontario Attorney General.
A lawsuit filed in Ontario Superior Court earlier last month by private lenders SSMT Management Inc. and Oculus Mortgage GP Inc., alleges that two Sikh temples jointly obtained financing that was eventually increased to $15 million. Grewal is also named as a guarantor.
The lenders allege that about $12 million of the agreed financing was actually advanced and that more than $13 million, including outstanding interest, remains owing.
None of the allegations in the latest civil lawsuit, or the broader allegations currently before the courts and Law Society Tribunal, should be treated as findings of wrongdoing unless and until they are proven.
Peel police say the fraud investigation was launched in July, with officers looking into “the conduct of lawyers operating under RSG Law.”
“Investigators are particularly interested in speaking with anyone who believes they may have suffered a financial loss or may have information relevant to the investigation,” Peel police said in a release.
Anyone with information can contact Peel Regional Police by calling 905-453-2121 ext. 3335. Anonymous tips may also be submitted to Crime Stoppers by calling 1-800-222-TIPS (8477) or by visiting www.peelcrimestoppers.ca.
When you contact Crime Stoppers you stay anonymous, never have to testify, and could receive a $2,000 reward.
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