KAMPALA: Dfcu Bank has reversed its decision to acquire 48 disputed properties sold by Bank of Uganda following the collapse of Crane Bank.

In its 2019 annual report released on Wednesday, Bank of Uganda said dfcu Bank had opted out of the acquisition of the properties held under a Ruparelia Group subsidiary – Meera Limited.

“… dfcu in a letter dated September 12, 2019 communicated … its decision to exercise its option to rescind its interest in purchasing the 48 properties pursuant to clause 8.7 of the agreement,” the report, which touches a number of issues, including the court cases brought against the Central Bank, reads in part.

The report further said: “As part of rescinding of the purchase, dfcu will return to Bank of Uganda certificates of title for Meera Investments Limited properties and requires Bank of Uganda to pay to dfcu the net book value of the properties recorded in the assets and inventory compilation report as at October 20, 2016.”
It is not yet clear how much Bank of Uganda will be required to refund.

Dfcu’s decision came after Bank of Uganda lost a case against businessman Sudhir Ruparelia and Meera Limited.
In August, High Court Judge David Wangutsi ruled against Crane Bank in receivership and ordered Bank of Uganda to pay costs after it was proved that Crane Bank did not have the jurisdiction to sue since it was in receivership at the time the case was filed.

The Central Bank appealed the ruling and the case was fixed for hearing on November 27.
Dfcu Bank has since acquisition of Crane Bank in 2017 faced court cases and has been a target of numerous media reports purported to be fake.