The aftermath of a 24th October 2023 High Court ruling has prompted the Lands Ministry to cancel all land titles held by dfcu Bank, following allegations of the illegal transfer of 48 properties belonging to Meera Investments. This dispute arose after dfcu Bank acquired assets from tycoon Sudhir Ruparelia's Crane Bank in January 2017.
The High Court ruling deemed dfcu Bank's actions as illegal, stating that the bank had wrongly transferred the properties to itself after taking over Crane Bank. Meera Investments, a real estate property development firm, owned the contested properties, and it was revealed that Crane Bank had been renting from them.
In response to the court ruling, the Lands Ministry has instructed dfcu Bank to hand over the copies of the titles that were handed to them by the Bank of Uganda (BOU) within seven days. The Commissioner of Lands, in a letter dated November 8, emphasized the need for rectification and the return of titles to the rightful owner, Meera Investments.
Justice Tadeo Asiimwe of the High Court- Land Division had not only ordered dfcu Bank to rectify the situation but also directed them to pay Meera Investments Shs2.4 billion in damages with 8% interest per year for trespassing on the property. The Lands Commissioner clarified the implementation of the court decree, stating that the ministry had canceled the leases and entries on the register and white pages of dfcu Bank as the proprietor of the 48 leasehold properties.
“The purpose hereof is, therefore, to request that, since the leasehold titles have been canceled, thereby rendering the 48 duplicate certificates of title in your possession legally inconsequential, the same should be returned to this office to avoid any possible misuse thereof. Kindly do so within seven days from the date of receipt of this letter.” The letter to dfcu Bank from the Lands Commissioner reads.
This development adds another layer to the legal battle surrounding the acquisition of Crane Bank assets and brings attention to the complexity of property disputes in Uganda's financial sector. The cancellation of titles underscores the gravity of the court's ruling and signals a significant setback for dfcu Bank in its handling of the acquired assets.
