City tycoon Dr Sudhir Ruparelia laughs last ,as DfCU bank is ordered to vacate and repair his 48 properties and compensate him Shs2.4 billion
Having severally and decisively defeated the Bank of Uganda in court, over the seizure of his Crane Bank in 2016, and a subsequent sale to dfcu Bank in 2017, billionaire businessman Dr. Sudhir Ruparelia has now taken the legal battle to dfcu, the main beneficiary of the impugned transaction.
Just as dfcu is reeling from a UGX 8.8 billion UK Court of Appeal order, a Uganda High Court has again slapped dfcu a restore-to-tenantable state and another a UGX2.4 billion compensatory order in favour of sudiri Ruparelia
The 48 properties are located in different towns including Kampala, Kasese, Masaka, Samia Bugwe, Busia, Masindi, Gulu, Malaba, Entebbe, Kabale, Hoima, Soroti, Mukono, Ibanda, Arua, Fort Portal, among others.
A declaration that the plaintiff as the registered proprietor of the freehold/mailo interest in the suit properties, is entitled to vacant possession of the properties within three months from the judgement date.”
Since Crane Bank is defunct, court ordered that dfcu pays costs of the suit to Meera Investment Limited the mother company of crane bank limited that instituted the suit on behalf of its child company, Crane bank.
The court declared Meera Investment Limited as the registered proprietor of the freehold/mailo interests in the properties.
Court gave dfcu three months to vacate the premises.
The central bank closed Crane Bank Limited in October 2016 claiming it was undercapitalized, after it allegedly failed to comply with a capital call on July 1 and some of its assets were sold to dfcu bank.
There were assets that remained in the hands of Bank of Uganda and were supposed to be disposed of during the liquidation process. BoU subsequently placed CBL under receivership on January 12 2017 in exercise of its powers under section 99 (1,2) of the Financial Institutions Act 2004.
The supreme court however after deliberations that ran for four years, ruled that Crane Bank should revert to Sudhir and asked BoU to pay costs.