Meera Investiments has dragged Dfcu Bank to Land Division of the High Court, seeking to reclaim its 46 branches that were allegedly acquired illegally countrywide following the dissolution of Crane Bank.
These are part of the shares of Meera Investment that Sudhir lost during the takeover of Crane Bank by DFCU early last year.
Should court agree with the arguments of Meera Investments, all the 46 countrywide DFCU Bank branches will be closed and reverted to former.
Also sued alongside DFCU Bank, is the Commissioner of land registration in connection with the land on which the buildings for the 46 branches sit.
In the suit, Meera Investments contends that it is the rightful owner of the 46 branches formerly trading as Crane Bank and that for any transfer to have been effected to Dfcu Bank; it is consent should have first been sought.
“The Commissioner land registration connived with DFCU Bank to transfer the leases of the 46 properties into the latter’s names without the written prior consent of Meera Investments, a move which is null and void,” Sudhir argues.
Meera Investments, which is one of the entities owned by business tycoon, Sudhir Ruparelia, wants court to declare that the continued presence of DFCU Bank on its properties amounts to trespass and that they should be ordered to vacate with immediate effect.
On the part of the Commission land registration, Meera Investiments wants court to direct them to immediately cancel out DFCU Bank as being the right full owner of those suit properties and reinstate them as the rightful owners.
Meera in its law suit, avers that at the time when Bank of Uganda (BoU) took over the management of then Crane Bank, now under receivership, in October 2016 before its eventual sell to DFCU, was the lessee of the suit properties and paying US $6,000 every beginning of the year.
Meera adds that by transferring the same properties to DFCU Bank without their prior written consent, is illegal.
In exercise of its powers, Bank of Uganda in January transferred the liabilities (including deposits) of Crane Bank to DFCU Bank.
Bank of Uganda Governor Emmanuel Mutebile said in a statement that the central bank also conveyed Crane Bank’s assets to DFCU bank.
Addressing journalists in Kampala, Mr Mutebile explained that all customers and depositors of Crane Bank were to have their accounts operated by DFCU Bank through its wide branch network.