Crane Bank saga: dfcu Bank handed big blow as Lands Ministry cancels 48 land titles

Kampala, (UG): Following an October 24 High Court ruling that dfcu Bank illegally transferred to itself 48 properties belonging to Meera Investments when it took over tycoon Sudhir Ruparelia’s Crane Bank, the Lands Ministry has cancelled all the said land titles.

Subsequently, the ministry has asked dfcu to hand over the copies of the titles BOU handed to them.

The Crane Bank assets were acquired by DFCU Bank in January 2017 at a cost of 200 billion shillings, on grounds that it was undercapitalized as declared by the regulator, BOU.

After dfcu took over the buildings that were thought to belong to Crane Bank Limited (CBL), it emerged that CBL was simply renting from Meera Investments, a real estate property development firm that provides residential and commercial construction services.

In a letter dated November 8, the Commissioner of Lands asked dfcu to hand over the titles within 7 days for rectification so that his office prepares to return them to the owner.

The High Court- Land Division Justice Tadeo Asiimwe also ordered DFCU Bank to pay Meera Investments Shs2.4 billion in damages with 8% interest per year for trespassing on the property, in a ruling issued last month.

“You will recall that judgment in the above-captioned suit was entered in the favour of the Plaintiff, Meera Investments Limited against DFCU Bank Limited and the Office of the Commissioner Land Registration,” dfcu was told in a letter from the Lands Commissioner.

“In view of the self-executing nature of the orders of the Court and in order to avert possible contempt proceedings, this office proceeded and implemented the decree of the court to the extent of the orders made for its implementation, by rectifying the register and cancelling the leases as encumbrances on the Mailo and Freehold certificates of title registered in the names of Meera Investments Limited and further by cancelling all the entries on the register and white pages of DFCU Bank Limited as proprietor of the 48 leasehold properties,” the Lands Commissioner added.

“The purpose hereof is therefore to request that, since the leasehold titles have been cancelled 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 says.

Read below the Lease Cancellation and implementation of the Decree in Civil Suit NO 948 of 2017; Meera Investments Ltd Vs dfcu Bank Ltd & Commissioner Land Registration.