Businessman Dr Sudhir Ruparelia has said the mafia clique behind the takeover and selling of his Crane Bank will pay heavily.
The property mogul made the revelation on Monday after winning a Shs397 billion lawsuit that was filed by Bank of Uganda against him in the aftermath of the closure of the commercial bank.
“I think this is a big win against the mafias. i am going to give a lesson to these people, they have taken over several banks. I invested a lot of money in my bank for 25 years and for you, you just come and steal it plus my assets. You claim that you put money in Crane Bank yet you cannot even account for it. Somebody stole that money in the name of Crane Bank and i don’t think its new since Cosase came up with a report that exposed them,” said Sudhir.
He further said his victory today is historical since nobody in the past has ever been able to take Central Bank down in Court.
“I must thank all my lawyers that have participated in this case, they have really done a tremendous job. This is historical, nobody in the past has been able to take down Central Bank. They have stolen several banks but nobody have ever been held accountable.”
In his ruling,the High Court Commercial division Judge David Wangutusi stated that BoU/Crane Bank (in receivership) did not have a legal basis to sue Sudhir, the owner of Crane Bank, then the second biggest bank in Uganda.
Court also ordered Bank of Uganda to pay Sudhir’s legal costs.
BoU /Crane Bank in Receivership sued the property mogul and Meera Investments Limited for allegedly fleecing the defunct Crane Bank Limited (CBL) of Shs397 billion that the central bank wanted refunded.
Sudhir denied the allegation and has since counter-sued BoU, seeking compensation of $8m (Shs28 billion) in damages for breach of contract.
Last month, he asked the Commercial Court to dismiss the case arguing that the central bank over stepped its mandate in commencing court proceedings against him and his Meera Investments Company.
Presenting an objection against BoU, Sudhir through his lawyers Kampala Associated Advocates told Justice David Wangutusi that when dissolving a bank, BoU had three options including putting someone else in its management – what is termed as statutory management, receivership or liquidation.
Counsel Elison Karuhanga argued that however, BoU chose to go for receivership yet under the law, specifically only the manager and the liquidator of the said bank is mandated to file a suit and not a Receiver.
He further explained that, BoU as a Receiver could only dissolve or sell Crane Bank within 12 months but not sue it’s managers.
However, in response to the submissions of Sudhir’s lawyers, BoU through its lawyer Dr Joseph Byamugisha told court that when a financial institution is placed under receivership the power to commerce or to continue with a civil suit does not stop.
BoU on October 20, 2016 placed Crane Bank under statutory management for being under-capitalised.
The central bank attributed the under-capitalisation to mismanagement and insider lending, resulting in Crane Bank’s unsustainable non-performing loan portfolio. The bank was later sold to dfcu Bank in January 2017, although the central bank retained some of its liabilities.
Bank of Uganda closed Sudhir’s bank, then the second biggest bank, and largest indigenous financial institution
Meanwhile, separate investigations by the Auditor General and Parliament recently found contrary information regarding the takeover and sale of Crane Bank. It was also discovered that BoU managers fell short of professionalism, having closed six more banks in the same shabby and illegal manner.
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