DFCU CLOSES 22 BRANCHES AS IT VACATES SUDHIR’S BUILDINGS

By our reporter

www.mknewslink.com

In Kampala

The embattled DFCU Bank has conceded and decided to vacate all the branches owned by Meera Investments Limited, which is part of the Ruparelia Group of Companies.

DFCU Bank has already opened bids for companies that want to provide consultancy services as it seeks to relocate to new areas in various districts and towns across Uganda.

The bank has been operating its business in buildings/properties belonging to Meera Investments Limited since it acquired Crane Bank Limited in 2017.

In August it emerged that the bank was misled by city Law firm Sebalu & Lule Advocates to illegally transfer title properties into its name yet the properties belong to Meera Investments Ltd even though it had leased them to Crane Bank Limited.

The law firm misled DFCU Bank to transfer leasehold titles from Crane Bank Ltd during the controversial takeover two years ago.

In a leaked document titled Transfer of former Crane Bank household properties, dated May 8, 2017, “the law firm skipped important aspects of the law including the fact that banks are not allowed to invest in business for fear of conflict of interest with their clients, apart from their main premises” banking analysts say.

“In light of the lengthy of time between the completion of date and when DFCU can vividly exercise the option to rescind the purchase of household properties, our recommendations is that the transfer be registered immediately,” reads an excerpt from the leaked document.

The whole procedure was entangled with fraud as there was no consent from the Landlord (Meera Investment Ltd) before transferring the lease to another party.

“The developments in August nullified the transfer as lack of consent alone nullifies the whole procedure” as ownership belonged to Meera Investment Ltd, an independent

Meera has previously asked court to declare that the continued presence of dfcu Bank on its properties amounts to trespass and that they should be ordered to vacate with immediate effect.