Toronto: Two gurdwaras in Ontario are facing a lawsuit over more than C$13 million (around ₹89 crore) in outstanding loans. The case involves a former Liberal MP and his law firm, with the lending companies alleging that loans extended to the religious institutions were not repaid and that required security over the gurdwaras’ properties was not properly registered.
According to a report published by The Canada Nation on September 18, SSMT Management Inc. and Oculus Mortgage GP Inc. have filed the case in the Ontario Superior Court of Justice against Sikh Spiritual Centre Toronto, also known as the Etobicoke Gurdwara, and Nanaksar Thath Ishar Darbar in Brampton.
The lenders allege that loans provided to the two religious institutions remain unpaid. They further claim that the necessary documentation to register the gurdwaras’ properties as security for the loans was not properly completed by a lawyer associated with RSG Law.
According to court documents cited in the report, SSMT provided a C$10 million loan to Sikh Spiritual Centre Toronto on April 25, 2025. On May 20, the overall credit limit was increased to C$15 million, with the additional amount intended to be secured against the property of the Nanaksar gurdwara in Brampton.
The lenders say approximately C$12 million was ultimately advanced, while more than C$13 million, including interest, remains outstanding.
The loans carried an interest rate of up to 15% for the first six months, after which the rate increased to 24%. According to The Canada Nation, interest on C$15 million at an annual rate of 24% would amount to around C$300,000 a month.
Dispute over security on Brampton property
The lawsuit also concerns an alleged failure to register a second charge against the Brampton gurdwara property as security for the loan.
According to the report, the owner and operator of the law firm was responsible for registering the charge. The firm, however, says the charge was never registered, leaving the lender without the security it expected. Such a charge would have provided a legal claim over the property if the loan was not repaid.
The law firm’s owner is also facing separate disciplinary proceedings before the Law Society of Ontario, according to the report.
Ontario Superior Court Justice Frederick L. Myers ordered on September 11 that the Brampton property cannot be sold or subjected to another loan or financial encumbrance until the next hearing scheduled for January.
However, the parties have given conflicting accounts about the current status of the lawsuit. Lawyer Simon Biber, representing one side, said in an email that, to his knowledge, the matter had been resolved. Lawyer Maria Naimark, representing another party, said the case had not been resolved.
Financial transactions involving the gurdwaras and law firm
The report also refers to financial transactions involving the RSG Law trust account and the two gurdwaras.
Records presented during proceedings before the Law Society of Ontario show that two payments of C$250,000 each were made to Sikh Spiritual Centre Toronto on April 7 and April 10. Another payment of C$250,000 was reportedly made to Guru Nanak Darbar, a commonly used name for the Brampton gurdwara.
