Dfcu fined Shs 2.4bn, ordered to vacate Crane Bank premises 

High court judge Tadeo Asiimwe has ordered dfcu bank to immediately vacate premises previously owned by Crane Bank Limited.

Dfcu took over Crane Bank and its assets for Shs 200 billion in January 2017 after Bank of Uganda put it up for sale.

Crane bank ran into trouble in October 2016 after it became undercapitalized –  with Bank of Uganda appointing a statutory manager for Crane bank and later placing the bank under receivership before selling it to dfcu – putting to an end a bank that many thought was too big to fail.

Meera Investments Ltd in 2017 filed a civil suit against dfcu and the commissioner for land registration, demanding that dfcu vacates their properties and transfer back the leasehold interests.

Now in an October 24, 2023 ruling, justice Asiimwe ruled that the transfer of leasehold interests of over 48 properties in various locations in the country from Crane Bank Limited was tainted with illegality and fraud and is therefore invalid.

He also issued a permanent injunction restraining dfcu and its agents and servants from continued trespass on the suit properties. The judge further awarded general damages amounting to Shs 2.4 billion carrying an interest rate of 8% per annum until the date of payment.

Emerging information indicates that dfcu bank ignored a November 2021 legal advice from the ministry of Lands commissioner Baker Mugaino to return the leasehold certificates of titles for the contested 48 properties belonging to Crane Bank Limited.