Meera Investments has dragged Dfcu Bank to Land Division of the High Court, seeking to reclaim its 46 branches which it says were acquired illegally following the dissolution of Crane Bank.
The closure of Crane Bank saw Dfcu bank become the third biggest bank after acquiring 46 branches from the then fastest growing financial institution in the country.
Now, Dfcu is in dilemma as Meera Investments which owned the properties in which Crane Bank operates, wants its assets back.
Should court agree with the arguments of Meera Investments, all the 46 buildings occupied presently by Dfcu countrywide will be closed and reverted to them as they have asked court.
Also sued alongside Dfcu Bank, is the Commissioner of land registration.
Meera investments, owned by property mogul, Sudhir Ruparelia, accuses the land registration for having connived with Dfcu Bank to transfer the leases of the 46 properties into the latter’s names without the written prior consent of Meera, a move they say is null and void.
Meera Investments wants court to direct them to immediately cancel out Dfcu Bank as being the rightful owner of those properties and reinstate them as the rightful owners.
Meera in its law suit, claims that at the time when Bank of Uganda took over the management of then Crane Bank in October 2016 before its eventual sell to DFCU, was the leaseholder of the suit properties and paying US $6,000 every beginning of the year.
Meera adds that 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 of Crane Bank to DFCU Bank.
Prof Emmanuel Mutebile the Bank of Uganda Governor said in a statement that the central bank also conveyed Crane Bank’s assets to DFCU bank.
