Dfcu Bank is in panic mode as Meera Investments which owned the properties in which the defunct Crane Bank operated, wants its assets back.
It should be recalled that Dfcu took over Crane Bank operations in January 2017 after Bank of Uganda had put it under receivership.
Crane Bank, then the largest indigenous financial institution in the country had a nationwide footprint thanks to sister company Meera Investments that owned several properties across the country.
When Dfcu took over Crane Bank, it also “took over” the branches that were owned by Meera Investments. Now Meera has dragged Dfcu Bank to the Land Division of the High Court, seeking to reclaim its 46 branches, accusing Dfcu bank of trespass and asked court to force them to leave immediately.
The property firm owned by tycoon Sudhir Ruparelia contends that their properties were occupied illegally with the aid of Commissioner land registration.
Meera Investments wants all their 46 buildings currently occupied by Dfcu Bank branches returned to them, a move that will greatly distabilise the bank’s operations if court grants Meera’s plea.
Dfcu Bank has been sued alongside the Commissioner of land registration.
According to copies of the suit accessed by Matooke Republic, Meera Investments contends that Dfcu Bank needed its prior consent to occupy their buildings, which were formerly occupied by Crane Bank.
Meera contends 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.
Meera Investments wants 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.
Meera Investments also wants court to direct the commissioner of land registration to immediately cancel out Dfcu Bank as being the right full owner of the said 46 properties and reinstate them as the rightful owners.
