UGANDA, Kampala | Real Muloodi News | In a significant development in the legal dispute between dfcu Bank and Sudhir Ruparelia’s Meera Investments, the Lands Ministry has cancelled 48 land titles.
This move follows a High Court ruling on October 24, 2023, which found dfcu Bank guilty of unlawfully transferring these properties to itself after acquiring Crane Bank.
The controversy dates back to January 2017 when dfcu Bank acquired the assets of Crane Bank for 200 billion shillings, citing the latter’s undercapitalisation as declared by the regulator, Bank of Uganda (BOU).
Subsequently, dfcu took possession of the properties believed to belong to Crane Bank. However, it was later revealed that Crane Bank was leasing these properties from Meera Investments, a real estate development firm providing residential and commercial construction services.
In response to the High Court ruling, the Lands Ministry has directed dfcu Bank to surrender the copies of the titles that were handed to them by BOU.
The Commissioner of Lands, in a letter dated November 8, emphasised the need for dfcu to return the titles within seven days for rectification. The goal is to prepare for the titles’ eventual return to Meera Investments.
The Lands Commissioner clarified that the court orders, being self-executing, were implemented to rectify the register and annul the leases as encumbrances on the Mailo and Freehold certificates of title registered in Meera Investments’ name.
Additionally, all entries related to dfcu Bank as the proprietor of the 48 leasehold properties were canceled.
As part of the corrective measures, dfcu Bank has been instructed to return the duplicate certificates of title within the stipulated seven days.
In the letter, the Lands Ministry highlighted the legal insignificance of these titles after it cancelled the leasehold titles, emphasising the need to prevent any potential misuse.
The recent court ruling also mandated dfcu Bank to compensate Meera Investments with Shs2.4 billion for trespassing on the properties, along with an 8% annual interest.
The Lands Ministry’s actions underscore the commitment to implementing the court’s orders and rectifying the legal intricacies surrounding the disputed properties.
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