Troubled DFCU Bank has Saturday kicked off the process of exiting 22 buildings which belong to city businessman Sudhir Ruparelia and his Meera Investments which the bank had illegally occupied since taking over Crane Bank in a hotly contested sale.
The has also been battling and losing court cases as Mr Sudhir disputes the hostile takeover of his bank.
One of those legal battles include the illegal occupancy of his Buildings which formerly houses Crane Bank. Realising DFCU couldn’t win the Case, it tactfully wrote to BoU that it had considered returning the businessman’s properties.
Against that backdrop, the bank began by closing its branch on Kampala Road at Crane Chambers. Movers were Saturday seen emptying the banking hall.
In a notice, DFCU informed its clients that the bank remains closed until February 3 and relocating to a new home.
“We hereby inform you that our Kampala Road Branch will be relocating to its new premises effective Monday 3rd February. The Branch will remain closed for two days on Friday 31st January and Saturday 1st to enable us to relocate to new premises,” reads a notice.
Adding that: “During this period you can access our services at Market Street.”
The Bank will be closing more 20 branches in the relocation exercise.
DFCU considered vacating 22 building which belong to businessman Sudhir Ruparelia and his Meera Investments Limited it has been occupying illegally since it took over defunct Crane Bank in 2017.
However, the Bank has been grappling with legal battles which it has lost to Sudhir Ruparelia, the former owner of Crane Bank who believes his bank was fraudulently sold by Bank of Uganda under the guise of insolvency.
In August it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties into its name yet the properties belong to Meera Investments Ltd even though it had leased them to Crane Bank Limited.
Sebalu & Lule Advocates who have been barred by court from representing the same bank against city tycoon Sudhir Ruparelia for being conflicted. The law firm misled dfcu Bank to transfer leasehold titles from Crane Bank Ltd during the controversial takeover two years ago.
The 200 billion deal (UGX) DFCU Bank struck with BOU to acquire Crane Bank in 2017 has since gone sour.
DFCU bank conceded defeat and agreed to return 22 properties which the bank occupied illegally after fraudulently acquiring Crane Bank that belonged to property mogul Sudhir Ruparelia and his Meera Investments Limited.
DFCU could have envisaged that not even the regulator- Bank of Uganda could secure the 22 former Crane Bank branches.
DFCU had since invited bidders that want to provide consultancy services at it seeks to relocate to new areas in various districts and towns across Uganda.
