The Bank of Uganda has added more two years to dfcu Bank to occupy freehold properties of businessman Sudhir Ruparelia under his Meera Investments Limited.
BoU follows the expiration of the initial period of 24 months.
In October 2016, BoU took over Crane Bank on grounds of undercapitalization, placed it under receivership. The commercial institution was later in January 2017 sold off to dfcu Bank.
In the sale agreement, dfcu which received some of the assets and liabilities of Crane Bank was allowed to operate in different Crane Bank branches whose ownership belonged to Meera Investments Limited.
According to Eagle Online, the deal to give dfcu bank extra time was signed by BoU Governor Emmanuel Tumusiime-Mutebile, Deputy Governor Dr Louis Kasekende as well as Head of Legal Margaret Kasule on one side while dfcu top bosses appended signatures on behalf of the commercial bank.
In 2018, the property development company dragged dfcu to Land Division of the High Court, seeking to reclaim its 46 branches that were allegedly acquired illegally following the dissolution of Crane Bank.
Meera Investment stated in its suit that dfcu Bank needed its prior consent to occupy their buildings which were formerly occupied by the defunct bank.
It contended that 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 the bonafide owner of the property which meant the deal was null and void.
The company also requested 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.