LONDON – A London court has dismissed an application by dfcu Bank and its directors to require Sudhir Ruparelia and his associates to deposit security in their bid to claim compensation exceeding $200 million.
In his October 30 ruling, Mr. Justice Stephen Hofmeyr KC dismissed the reasons submitted by dfcu Bank and its UK directors “in their entirety.”
The lawsuit alleges that Bank of Uganda officials conspired with dfcu Bank and its directors to seize Crane Bank and sell its assets at a gross undervalue.
Ruparelia, chairman of the Ruparelia Group, claims unlawful means conspiracy against dfcu Bank, its executives, and four development finance institutions.
The case stems from the 2016 takeover of Crane Bank, then one of Uganda’s largest commercial banks, by dfcu Bank. The Bank of Uganda, the country’s central bank, had placed Crane Bank under receivership citing financial instability.
Ruparelia and his shareholders dispute the takeover, alleging that Bank of Uganda officials and dfcu Bank colluded to undervalue Crane Bank’s assets and syphon off public funds.
The UK Court of Appeal previously ruled that Crane Bank’s claims are not barred by the foreign act of state doctrine, which prevents English courts from hearing matters concerning foreign government acts of state.
Crane Bank’s claims will now proceed to trial in the English courts.
Ruparelia’s lawyers, Greenberg Traurig, hailed the ruling as a significant victory. The team was led by Masoud Zabeti, with Lord David Pannick KC and Hannah Brown KC.
The case has significant implications for Uganda’s banking sector and the country’s efforts to tackle corruption.
