When Dfcu Bank took over Crane Bank in January 2017 following a transaction that court already ruled was tainted with fraud and collusion with Bank of Uganda officials, they also took possession of 48 properties that housed Crane Bank branches and transferred leasehold interests to themselves, facilitated by BoU.
Following Sudhir’s 2020 court victory against BoU, which had facilitated the transfer of the properties to Dfcu, Dfcu hastily vacated the branches, but they still owned the titles and Sudhir sued them (Dfcu) for trespass and the Commissioner of Land Registration for illegally transferring his properties, registered under his Meera Investments.
Now court has recently made a ruling on the matter, with Dfcu to pay Shs2.4bn among other declarations.
“The Plaintiff is awarded general damages in the sum of Shs2.4bn payable by the 1st Defendant (Dfcu). The said sum shall carry interest of 8% per annum from the date of this judgement till payment in full,” an October 24 ruling by Justice Tadeo Asiimwe of the High Court reads in part.
Court faulted the Commissioner Land Registrations declaring that the transferring the said properties to Dfcu “was tainted with illegality and fraud and is therefore invalid” as Meera Investments, which was the registered proprietor had to right to consent to any taking of possession and transfer of their leasehold interests to Dfcu, which wasn’t the case.
The Commissioner of Lands Registration was ordered to cancel the registration of the Dfcu as proprietor of the leasehold interests in properties, returning Meera Investments as the rightful owner.
A declaration was made that the occupation and continued utilisation of the properties by the Dfcu constitutes trespass and vacant possession was ordered within three months from judgement date. Dfcu has recently vacated for the properties, but they have to pay for trespass during the period they illegally occupied the properties.
Court also ordered a permanent injunction restraining Dfcu and its agents and servants from continued trespass on thc suit properties.
Meera investments was also awarded costs of the suit.
Following the ruling, Dfcu released a statement that they were indemnified by BoU under the Purchase of Assets & Assumption of Liabilities (P&A) agreement, meaning the taxpayer is likely to suffer this loss.
