A Khalistan 'embassy' set up in a Canadian gurdwara revives tensions just as India and Canada were working to rebuild strained diplomatic ties. The self-declared embassy has reportedly been set up inside a section of the Guru Nanak Sikh Gurdwara in Surrey, British Columbia, the same gurdwara once led by Hardeep Singh Nijjar, a pro-Khalistan figure designated a terrorist by India, who was killed in 2023.

Images accessed by India Today show signage of the ‘Republic of Khalistan’ installed at the gurdwara. Residents told CNN-News18 that the building also received partial funding, about $150,000, from the provincial government of British Columbia for infrastructure upgrades, including an elevator.

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Photograph: (X)

This development coincides with preparations for another ‘Khalistan referendum’ led by Sikhs for Justice (SFJ), an organisation banned in India. Indian security agencies are closely monitoring the situation.

Diplomatic progress at risk

The emergence of this so-called embassy comes at a delicate time, as both countries have shown signs of diplomatic rapprochement. Prime Minister Narendra Modi recently held a face-to-face meeting with Canada’s newly elected Prime Minister Mark Carney during the G7 Summit, their first since the fallout over Nijjar’s killing and the subsequent allegations made by former Canadian Prime Minister Justin Trudeau, accusing India of involvement, which New Delhi strongly denied.

Canada acknowledges the extremist threat

India has repeatedly flagged its concerns about Khalistani separatists using Canadian soil to promote extremist ideology, raise funds, and plan acts of violence. For years, New Delhi criticised Ottawa for what it called a lack of action.

Canada’s intelligence agency, the Canadian Security Intelligence Service (CSIS),  formally acknowledged these concerns in its 2025 annual report. For the first time, CSIS categorised the Khalistan movement under “politically motivated violent extremism” (PMVE), highlighting that Canada-based Khalistani extremists (CBKEs) continue to use the country as a hub for global financing and planning of violence, primarily targeting India.

While no attacks linked to CBKEs occurred in 2024, CSIS warned that these groups remain active and pose a continuing threat. The agency noted its aim to create alternative political systems, such as an independent Khalistan, through violent, cross-border means.

Broader impact

The naming of a Khalistan “embassy” on Canadian soil, particularly in a gurdwara already central to Indo-Canadian tensions, has the potential to derail the fragile diplomatic reset. The move is seen in India as a provocation and could hinder further progress in rebuilding trust between the two nations. India is likely to raise the issue through diplomatic channels in the coming days.