A stalled residential development in Brampton, Ontario has been placed into receivership after its owner defaulted on a $25 million loan, with court documents also raising unresolved questions about a second mortgage registered on the property.
RSG Mayfield Inc., a Greater Toronto Area developer, was placed into receivership on September 28, 2026, after an application from lenders Vector Financial Services Limited and Olympia Trust Company. The lenders said they were owed approximately $26.3 million as of September 8, 2026, after RSG Mayfield stopped making monthly interest payments in April 2026.
The property at 0 Mayfield Road had been slated for a 364-unit residential community, including 52 single-family homes, 52 townhouse units and 260 condominium apartments spread across roughly 468,000 square feet of gross floor area. Construction never began, and the land remained undeveloped at the time of the receivership hearing.
Loan Default and Enforcement
Vector and Olympia agreed to advance $25 million to fund the property’s acquisition under a commitment letter dated April 15, 2025. In exchange, the lenders received a first-ranking mortgage registered on May 12, 2025, along with a general security agreement, an assignment of rents and a personal guarantee from Rajvinder Singh Grewal, RSG Mayfield’s sole director and officer.
After RSG Mayfield stopped paying interest, the lenders issued a demand for repayment and a notice of intention to enforce security on April 24, 2026, and began legal proceedings against the company and Grewal on May 8. By September 8, the debt had grown to $26,269,753.66, a figure the lenders said did not include ongoing interest, legal fees or other enforcement costs.
Questions Over a Second Mortgage
The lenders also flagged changes made to the property’s subordinate financing after enforcement began. A $3.5 million second mortgage held by Avtar Singh Grewal, which had been subordinated to the lenders’ claim, was discharged on May 26, 2026. On the same day, a new $8.1 million mortgage was registered in favour of Jagtar Raman and Inderjit Dhugga. Vector and Olympia said they had not consented to this new charge and did not know what consideration was involved or whether the discharge and new registration were connected.
The Mayfield property is also linked to separate litigation brought by WIGI Restructured Bond Corporation against Grewal, Avtar Singh Grewal, Davinder Khattra, RSG Law Professional Corporation and other related parties, which includes allegations of fraudulent conduct against certain defendants. In that case, Justice Myers granted a Mareva injunction on April 23, 2026, and later appointed AlixPartners as sales officer over a broader portfolio of connected properties, with restrictions registered against the Mayfield property in June.
Separate Receivership Sought to Limit Delay
Vector and Olympia asked for a standalone receivership over the Mayfield property rather than having it absorbed into the larger WIGI proceeding, arguing that RSG Mayfield had no operating business, employees or revenue to protect, and that keeping the sale separate would reduce costs and delays. AlixPartners, acting as sales officer in the related case, did not oppose the request.
In his September 28 endorsement, Justice Myers found the mortgage to be in default and said the property needed oversight and a sale process. Neither RSG Mayfield nor Grewal opposed the receivership. However, the court said questions remained about the validity of the second mortgage and how any surplus funds, after the first mortgage is repaid, should be distributed.
Justice Myers declined to allow any surplus proceeds to be automatically paid out to the second mortgagees or the property’s owner without further review, ruling instead that the competing claims should be examined as part of the broader WIGI proceeding, where similar questions involving other related properties are already being addressed.
Under the receivership order, the Mayfield property is removed from AlixPartners’ general sales mandate, though AlixPartners retains oversight of any leftover proceeds. The appointed receiver, TDB Restructuring, is required to share property updates with AlixPartners, account for proceeds and transfer any remaining funds — after standard expenses and secured creditor payments — to be addressed through the broader proceeding. The order also preserves AlixPartners’ role regarding any interest Avtar Singh Grewal holds in the property.
Robins Appleby represented Vector and Olympia in the application, while Paliare Roland represented AlixPartners in its role as sales officer in the related litigation.
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