KAMPALA —The dfcu Bank has asked Bank of Uganda to take back titles for the 48 properties that belong to Meera Investments Ltd of city tycoon Sudhir Ruparelia.
The development, which first came out about 10 days ago but denied by the dfcu Bank has been confirmed by Bank of Uganda in it’s 2018/19 annual report.
Governor Emmanuel Tumusiime Mutebile notes in the report that dfcu Bank had indicated to the central bank that they will exit the properties in the wake of a legal suits, where city businessman has repeatedly defeated both the central bank and those conjoined in the decided court cases so far.
“As part of rescinding of this purchase, dfcu will return to BoU certificates of title for Meera Investments Limited properties and requires BoU to pay to dfcu Bank Limited the net book value of the properties recorded in the assets and inventory compilation report as at October 20, 2016,” BoU in the highlights of the report.
This website has also seen a confidential letter from dfcu Bank Managing Director Mathias Katamba to Governor Tumusiime Mutebile confirming the development. It is understood BoU will pay dfcu Bank UGX 48 billion as a result of the failed transaction as the fallout from the sale of Crane Bank continues.
Without giving details on the relocation, BoU noted that decision had been taken in the wake of a court ruling which dismissed a case Central Bank had slapped Crane Bank (In receivership) on a technicality.
Early this month, this website reported that dfcu Bank was shutting down branches housed in Meera Investments Ltd buildings, the estate development arm of Ruparelia Group of companies, a report the bank dismissed at the time, insisting that a review of the bank’s branch network was part of it’s digital strategy.
The confirmation by Central Bank puts an to the longtime confusion and confirms an internal procurement document that showed that dfcu Bank was de-commissioning some of the branches housed in the properties under dispute as the legal battle between Sudhir and his companies against Bank of Uganda rages.
dfcu Bank whose public image is under close scrutiny since taking over Crane Bank Ltd in 2017, was ordered to vacate the buildings owned by the former’s landlord Meera Investments Ltd after it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to transfer title properties.
The law firm has since been banned from representing dfcu Bank in the dispute after being found guilty of conflict of interest.