the Pointer: 'Desperate for funds, former Brampton MP Raj Grewal defaults on loan, misses court ordered payment, forced to hand over 2 houses and pay $1.2M after losing lawsuit’
Another major story from the Pointer '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’
"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.
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, 2025 | 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.