The Bank of Uganda (BoU) in its 2018/ 2019 Annual Report has confirmed that dfcu Bank is in preparations to leave 48 properties that the defunct Crane Bank Limited (CBL) was operating its branches before it was taken over by its rival in January 2017 in a Shs200 billion transaction.
“Following the Court’s ruling … dfcu Bank Limited in a letter dated September 12, 2019 communicated to BOU its decision to exercise its option to rescind its interest in purchasing the 48 properties pursuant to clause 8.7 of the Agreement,” BoU says in its latest annual report.
The report adds that as part of the rescinding of this purchase, dfcu will return to Bank of Uganda Certificates of title for Meera Investments Limited ‘and requires Bank of Uganda to pay dfcu the new book value of properties recorded in the assets and inventory compilation as October 20, 2016.’
On August 26, 2019, Court ruled on Miscellaneous Application No.320 of 2019 in favor of Sudhir Ruparelia and Meera Investments Limited dismissing Suit No.493 of 2017 where Crane Bank (receivership) had sued Sudhir Ruparelia and Meera Investments Limited to recover Shs397 billion allegedly swindled.
Court ruled that costs of the application be paid by the Bank of Uganda on the basis that Crane Bank (in receivership) is non-existent and does not have locus standi to put forth any claim against Sudhir and Meera Investments Limited.
A recent leaked document showed dfcu Bank calling for bids from companies that want to provide consultancy services at it seeks to relocate its branches to new areas in various districts and towns across Uganda.
Dfcu Bank has been operating its business in buildings/properties belonging to Meera Investments Limited since it acquired CBL over two years ago.
In August this year it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties into its name yet the properties belong to Meera Investments Ltd even though it had leased them to Crane Bank Limited.
According to a leaked dossier, the Sebalu & Lule Advocates who have been barred by court from representing the same bank against city tycoon Sudhir Ruparelia for being conflicted. The law firm misled dfcu Bank to transfer freehold titles from Crane Bank Ltd during the controversial takeover.
