By Spy Uganda
The Commercial Division of the High Court in Kampala has ruled that DFCU Bank must pay Crane Management Services, owned by city businessman Sudhir Ruparelia, a substantial amount in rent arrears and interest.
In 2018, Crane Management Services Limited filed a lawsuit against DFCU Bank over breach of contract and/or unjust enrichment.
Crane Management Services sought payment of USD $385,728.54 and UGX 2,998,558,624 in rental arrears, interest, general damages, and costs. However, DFCU Bank countered the claims, denying any breach of contract or unjust enrichment. DFCU Bank also made a counterclaim against Crane Management Services Limited and Meera Investments.
Additionally, DFCU Bank requested that Crane Management Services Limited and Meera Investments pay USD $55,390.07, representing pre-paid rent previously paid by Crane Bank Limited for two properties: Kyambogo warehouse and 6th Street industrial area.
Properties Leased By Crane Bank Limited
Crane Management Services Limited had leased various properties to Crane Bank Limited for its operations. These properties included:
- Plot 9, Market Street (Crane Bank Branch): USD $4,205.52 per month, payable one year in advance.
- Plot 1-13, Jinja Road: Fixed duration of five (5) years at USD $9,800.34 per month, with a seven percent annual increment compounded.
- Plot 47, Republic Road, Mbale: Duration of 10 years at USD $8,361.77 per month, payable one year in advance.
- Speke Hotel (1996) Limited (Crane Bank ATM): USD $4,583.24 per month, payable one year in advance.
- Plot 19, Cooper Road, Crane Plaza, Apt No. 305: USD $600 per month, payable one year in advance.
- Plot 20 Kampala Road (Crane Bank ATM): USD $4,283.40 per month, payable one year in advance.
Other properties leased to Crane Bank Limited included apartments at Bombo Road, Kiira Road, William Street, Market Street, and Nkrumah Road, with varying rental amounts. Additionally, Plot 28, Luwum Street (Crane Bank Unit UG – 31&33) was leased at UGX 12,100,000/= per month, payable one year in advance.
Furthermore, Crane Bank Staff Flats on Kampala Road (Plot 22, 24, 26) were rented for fixed durations, with monthly payments ranging from UGX 1,200,000/= to UGX 30,816,000/=, depending on the number of apartments.
These come few months after Supreme Court in the United Kingdom dismissed attempts by DFCU Bank and its shareholders, to block a ￡170 million (UGX825.8 billion) suit filed by shareholders of the defunct Crane Bank.
The Crane Bank shareholders alleged that senior officials at the Bank of Uganda engaged in a corrupt scheme to take control of Crane Bank, selling its assets at an undervalued price and siphoning off public funds.
Crane Bank Limited, a member of the Ruparelia Group of Companies was registered on July 23, 1990, with registration number 80010000221522 to do banking business.
In October 2016, Crane Bank was fraudulently closed and subsequently sold to DFCU Bank for UGX 200 billion after the Bank of Uganda alleged its undercapitalization in January 2017.
