Tuesday, July 8, 2025
UG Standard - Latest News
  • Home
  • News
    • DIPLOMACY
    • COURT
    • AFRICA
    • BOOK REVIEW
    • INTERVIEW:
    • National
    • Parliament
    • World
    • Regional
  • Business
    • AGRIBUSINESS
    • OIL & GAS
    • REAL ESTATE
    • TECH
    • INNOVATIONS
    • TELCOM
  • OpED
  • EDUCATION
  • INVESTIGATION
    • NATIONAL ARCHIVE
    • SPECIAL REPORT
    • ANALYSIS
  • FEATURES
    • SOCIETY
    • Community
    • Pictorial
    • PROFILES
    • Lifestyle
    • Health
    • ENVIRONMENT
  • Tours & Travel
    • Hotel & Hospitality
  • Sports
  • About Us
  • Login
UG Standard - Latest News
ADVERTISEMENT

BIG BLOW TO SUDHIR! London High Court exonerates dfcu limited of connivance with Bank of Uganda over Crane Bank sale

by OUR REPORTER | UG STANDARD
11/10/2022
in News
Reading Time: 3 mins read
A A
0
Share on FacebookShare on Twitter
Mr. Sudhir and his lawyers from the Kampala Associated Advocates at an earlier court hearing. (PHOTO/File).
Mr. Sudhir and his lawyers from the Kampala Associated Advocates at an earlier court hearing. (PHOTO/File).

LONDON— Bank of Uganda sold Crane Bank Limited to dfcu limited transparently, a High Court in London, United Kingdom has ruled in a $211 million dispute involved Ugandan parties.

In the case Crane Bank Ltd. and others v. DFCU Bank Ltd. and others, case number CL-2020-000859, in the High Court of Justice of England and Wales—read on October 7, 2022, Lord Pelling QC sitting in London exonerated both dfcu and BoU of wrong doing.

Related posts

Looming unemployment: Farmers, Residents in shock as NEMA boss orders the demolition of multi million chicken farm

30/06/2025
336
Suspects in court on Monday.

Mpigi District boss, District Service Commission Members Charged over illegalities in Job offers

30/06/2025
164
MTN Uganda's mobile money restructuring faces "red flag" warnings from shareholders and a former partner alleging deceit and undisclosed liabilities. Regulators are urged to intervene.

RED FLAG! Shareholders worried as MTN moves to restructure MoMo services

30/06/2025
401

Tororo leaders hail Lady Justice Sarah Langa for her Dedication,Mentorship and Integrity

29/06/2025
272

He ruled that BoU is justified in performing their oversight role enshrined in Uganda’s constitution especially following several red flags and warnings it had brought to Crane Bank’s notice against wrong doings.

dfcu on the other hand was cleared of the alleged connivance to buy CBL assets at undervalued rate.

“In my judgment, therefore, whether a claim in conspiracy could succeed would depend on the detailed facts, as would the applicability of the MCA Records Principle, assuming that it applies to conspiracy at all. So far as this last point is concerned, there are at least two reasons why it is at least realistically arguable that it should not.” Judge Pelling QC stated

Crane Bank Ltd. and half a dozen shareholders represented by Hannah Brown QC, David Caplan and Ben Lewy of One Essex Court, instructed by Greenberg Traurig LLP had accused dfcu limited, its executives and four development finance institutions of taking part in a fraudulent scheme to buy the lender’s assets in January 2017 as part of a sham bidding process.

CBL and it’s shareholders had told the english court that the bank, which was closed in 2016, was illegally stripped of its assets in a corrupt scheme by government ministers working with the central bank under late governor Tumusiime Mutebile and his deputy Dr. Louis Kasekende.

But DFCU Bank and its parent company— represented by Joe Smouha QC and Jackie McArthur of Essex Court Chambers, instructed by Freshfields Bruckhaus Deringer LLP denied at the hearing that it “turned a blind eye” to wrongdoing by the Bank of Uganda, saying that the central bank did “what central banks are supposed to do” to protect taxpayers when it took over CBL.

The Central Bank maintains that CBL was undercapitalized and had run out of cash, a liquidity crisis that required intervention to prevent a run on its deposits.

dfcu lawyers argued that because BoU acted “in the lawful exercise of foreign governmental powers” when seizing control of CBL, under the foreign acts of state doctrine, the court needed to treat that action as “valid and lawful.”

Under the legal principle, English courts cannot question the legality of the acts of a foreign state, specifically in this case on the matter of the state seizing property, dfcu lawyers told Mark Pelling QC, sitting as a High Court judge.

dfcu further argued that if the court were to treat what the BoU did as lawful, then the lawsuit stemming from the bank’s actions had no “real prospect of success.”

In their defence, CBL lawyers urged that it was pushed into receivership with little advance warning in early 2016 by the BoU for allegedly falling short of financial health standards and failing to secure tens of millions of dollars in emergency funding.

The lawsuit, which targeted 15 individuals and businesses, had alleged the CBL was the victim of a scheme by senior Ugandan officials to seize control of a major bank and offer it to CEFC China Energy, a Chinese energy conglomerate.

But after the deal fell apart, the bank’s assets were put up for bid, with CBL’s assets being intentionally undervalued, according to the claim.

The lawsuit had also targeted Dutch lender Rabo Development and NorFinance, a Norwegian development financial institution, which agreed to provide dfcu with the capital needed to complete the transactions.

NorFinance and Rabo Development had each owned a 27.5% stake in dfcu until December 2016 and appointed directors to its board.

Their stakes were transferred to Arise BV, a Dutch investment company co-owned by Rabobank and others, in January 2017.

The case also targeted dfcu executives, directors, and individuals at the development institutions as well as Albert Jonkergouw, Rabobank’s director in Africa.

In his ruling, Justice Mark Pelling QC, also exonerated
dfcu executives, reasoning that they acted as directors for the bank.

The Supreme Court of Uganda had dismissed the case against the Crane Bank owners Sudhir Ruparelia and Meera Investments, at all levels on technical grounds, not their proof of innocence in regard to the alleged offences for which BOU acted.

The Court of Appeal had also ruled in 2021 that CBL’s receivership ended in January 2018, a decision that would restore control to the bank’s board.

The case has also been appealed to the Supreme Court.

Share this:

  • Share
  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on X (Opens in new window) X
  • Click to share on LinkedIn (Opens in new window) LinkedIn
  • Click to share on X (Opens in new window) X
  • Click to share on Pinterest (Opens in new window) Pinterest
  • Click to share on Telegram (Opens in new window) Telegram
  • Click to share on WhatsApp (Opens in new window) WhatsApp

Like this:

Like Loading...

Related

Tags: Bank of Ugandadfcu Bankdfcu limited vs SudhirFeaturedJustine Bagyendaparliament of UgandaSudhir RupareliaTrending

Related Posts

 Abbas urges U.S. to compel Israel to stop violations against Palestinians
News

 Abbas urges U.S. to compel Israel to stop violations against Palestinians

05/11/2022
0
306

Abbas urges U.S. to compel Israel to stop violations against Palestinians RAMALLAH, Nov. 4 (Xinhua) -- Palestinian President Mahmoud Abbas...

Read moreDetails
Equity ranked 4th strongest banking brand globally on brand strength, scoring 92.4 points out of 100

 Equity Bank Under Scrutiny for Alleged Role in UGX.3bn Fake Gold Scam

09/07/2024
618
Minister of Health Dr. Ruth Aceng and Permanent Secretary Dr. Diana Atwiine pay their respects at the burial of Dr. Joshua Musinguzi, a champion in the fight against HIV/AIDS in Uganda. Their presence honors his legacy and dedication to improving healthcare in Uganda.

 FULL LIST: Health Service Commission Shortlists Applicants for Key Roles

18/06/2025
1.2k
Kabuleta and other opposition politicians have teamed up to put an end to Museveni's leadership

 Kabuleta, other opposition politicians team up to put an end to Museveni’s leadership

27/02/2024
498
Load More

Popular Articles

  • Check out the top schools with pupils who scored 6 in 4 aggregates in the 2024 PLE results, as released by UNEB

    PLE 2024 Results: Top Schools with 6 in 4 Aggregates

    4370 shares
    Share 1748 Tweet 1093
  • How to Renew Your National ID Online: NIRA Pre-Registration Portal 2025 Guide

    3994 shares
    Share 1598 Tweet 999
  • NIRA unveils high-tech National ID, mass enrollment set to begin

    2664 shares
    Share 1066 Tweet 666
  • FULL LIST: Ministry of Education, NCDC publish self-study workbooks amid COVID-19 lockdown

    3323 shares
    Share 1348 Tweet 823
  • How to Check PLE Results 2024 on Phone, Online

    1784 shares
    Share 714 Tweet 446
  • PLE 2024 Results: UNEB Clarifies on Release Date

    1650 shares
    Share 660 Tweet 413
  • MPs clear govt to cancel 2020 academic year

    2796 shares
    Share 1150 Tweet 686

Recent Articles

Outrage in Rushenyi: Health Centres Caught in Storm Over Allegedly Stolen Campaign Donations

08/07/2025

Court convicts four Lira District officials for fraudulently procuring a land title on a Forest Reserve

08/07/2025
UHRC Chairperson, Lady Justice Mariam Wangadya, Commissioners of UHRC and other stakeholders who participated in the workshop.

Human Rights Record: UHRC Prepares government agencies for UN periodic review

08/07/2025
David and Deborah Mutaaga, aged 69 and 62, were stabbed to death in their Entebbe home. Police are investigating the crime, which showed no signs of forced entry.

Police Investigate Grisly Double Murder in Entebbe

08/07/2025
trade: Uganda and Kenya's joint mission in Kampala seeks to remove barriers, promote investment, and build stronger economic ties in East Africa.

Uganda, Kenya Forge Deeper Trade Ties at Kampala Mission

08/07/2025

Study: Men Link Love, Self-Worth to Providing Role

08/07/2025
Christopher Legilisho, an economist at Stanbic Bank,

Businesses Optimistic About Uganda’s Future

07/07/2025

Recent CommentsRecent Comments

  • The Journey of Ibrahim Traoré on How President Ibrahim Traoré’s ambitious vision is driving Burkina Faso’s economic growth push
  • Ugandan Scientists Finalists For European Inventors Prize — Press Uganda on Ugandan scientists finalists for European inventors prize
  • Government Pumps UGX1 Trillion Into UDB To Drive Industrialization, SME Growth — Press Uganda on Government pumps UGX1 Trillion into UDB to drive Industrialization, SME growth
  • PS Ggoobi Tips On Building USD 500b Economy — Press Uganda on PS Ggoobi tips on building USD 500b economy
  • Museveni Meets German Envoy Matthias Schauer After Subversion Claims — Press Uganda on Museveni meets German envoy Matthias Schauer after subversion claims

UG Standard - Latest News

UG Standard, published via www.ugstandard.com isa publication of Sahel Media Solutions Ltd, a professional Digital/New Media company in Uganda info@ugstandard.com

Follow us on social media:

Latest News

  • Outrage in Rushenyi: Health Centres Caught in Storm Over Allegedly Stolen Campaign Donations
  • Court convicts four Lira District officials for fraudulently procuring a land title on a Forest Reserve
  • Human Rights Record: UHRC Prepares government agencies for UN periodic review
  • Police Investigate Grisly Double Murder in Entebbe
  • Uganda, Kenya Forge Deeper Trade Ties at Kampala Mission
  • Study: Men Link Love, Self-Worth to Providing Role

OpED

HELLEN MASIKA: From Darkness to Solar Light in Kijumba 

Why de-register a Motor Vehicle in Uganda: and Consequences of Non-Compliance

Challenges of taxing law firms in Uganda

SHEILA ABOTH: Maternal healthcare must be everyone’s business because it takes a village

DARIUS NIWAHA KISHAHO: Securing Health After Retirement: Why a Post-Retirement Medical Cover is a Necessity, Not a Luxury

© 2024 Ugstandard - Latest News by Digital/New Media company.

Welcome Back!

Sign In with Facebook
OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • DIPLOMACY
    • COURT
    • AFRICA
    • BOOK REVIEW
    • INTERVIEW:
    • National
    • Parliament
    • World
    • Regional
  • Business
    • AGRIBUSINESS
    • OIL & GAS
    • REAL ESTATE
    • TECH
    • INNOVATIONS
    • TELCOM
  • OpED
  • EDUCATION
  • INVESTIGATION
    • NATIONAL ARCHIVE
    • SPECIAL REPORT
    • ANALYSIS
  • FEATURES
    • SOCIETY
    • Community
    • Pictorial
    • PROFILES
    • Lifestyle
    • Health
    • ENVIRONMENT
  • Tours & Travel
    • Hotel & Hospitality
  • Sports
  • About Us

© 2024 Ugstandard - Latest News by Digital/New Media company.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
%d