DFCU Bank is returning the 48 buildings that housed Crane Bank to Bank of Uganda, according to a letter the commercial bank’s managing director Mathia Katamba wrote to the Central Bank.
DFCU Bank on September 12, 2019, wrote a letter to Bank of Uganda explaining its decision to return 48 properties the bank has been occupying illegally.
These buildings belonged to property mogul Sudhir Ruparelia and his Meera Investments and were housing former Crane Bank which he owned before it was illegally sold to DFCU by Bank of Uganda.
The decision to rescind the interest to purchase these properties by DFCU comes after a historic court Victory in favour of Sudhir Ruparelia in August in a case filed against him by Bank of Uganda.
The Bank in a court redress sought a refund of shs 397 billion from the businessman which he allegedly pulled out of Crane Bank before it was taken over by DFCU.
The decision not to purchase the contested 48 properties by DFCU means they will soon vacate the branches and look for new homes.
However, DFCU earlier rubbished these reports that the bank was seeking to relocate the branches and disregarded the information as fake news.
“Following the Court’s ruling above, dfcu Bank Limited in a letter dated September 12, 2019, communicated to BOU its decision to exercise its option to rescind its interest in purchasing the 48 properties pursuant to clause 8.7 of the Agreement,” part of the report released Wednesday reads.
Adding that, “as part of rescinding of this 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.”
SOURCE: Trumpet News
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