Lands Ministry Acts on High Court Ruling, Orders DFCU to Rectify and Return Titles

Date: November 10, 2023

In a significant development, the Government of Uganda has revoked 48 land titles held by DFCU Bank, following a High Court ruling that deemed the bank’s acquisition of these properties illegal. The contested properties, originally belonging to Meera Investments, were acquired during DFCU Bank’s takeover of Crane Bank, owned by tycoon Sudhir Ruparelia.

The High Court’s decision on October 24 found that DFCU Bank had unlawfully transferred the properties to itself. Consequently, the Lands Ministry has taken swift action by canceling all the said land titles and demanding that DFCU Bank promptly surrender the copies of the titles handed to them by the Bank of Uganda (BOU).

The Commissioner of Lands, in a letter dated November 8, instructed DFCU Bank to return the titles within seven days for rectification. This move aims to correct the register and facilitate the return of the titles to their rightful owner, Meera Investments.

The legal battle stems from the revelation that Crane Bank Limited (CBL) was leasing the properties from Meera Investments at the time of the acquisition by DFCU Bank in January 2017. The Lands Ministry’s decision underscores the gravity of the situation, as it rectifies the register and cancels the leases that had been listed under DFCU Bank’s name.

Furthermore, the High Court- Land Division Justice Tadeo Asiimwe has mandated DFCU Bank to compensate Meera Investments with Shs2.4 billion in damages, along with 8% interest per year. This ruling comes as a consequence of the bank trespassing on Meera Investments’ properties.

The Lands Commissioner emphasized the self-executing nature of the court orders, stating, “In view of the self-executing nature of the orders of the Court and in order to avert possible contempt proceedings, this office proceeded and implemented the decree of the court.”

This development not only marks a legal setback for DFCU Bank but also highlights the government’s commitment to upholding property rights and legal procedures in land transactions. The seven-day deadline for title rectification adds urgency to the situation, setting the stage for a critical period ahead for the involved parties.